SAN FRANCISCO (AP) --
Hurd, 52, saw the value of his compensation in fiscal 2008 jump 31 percent over the previous year, according to AP calculations. The increase reflects the prosperous period HP enjoyed before the economic meltdown hammered the stock and cut into HP's profit.
Hurd also exercised $10 million worth of stock options and had $15.7 million worth of HP stock vest during the period, according to a regulatory filing Tuesday by the Palo Alto, Calif.-based technology company.
The biggest chunk of Hurd's raise came from cash incentives based on HP's performance during the 2008 fiscal year, which ended Oct. 31 and was a banner year for the company. For the year, HP's profit rose 15 percent to $8.3 billion, while sales climbed 13 percent to $118.4 billion. Those were big gains for a company the size of HP, which has faced questions from Wall Street about its ability to continue improving sales and profit margins at a steady clip.
Hurd, who joined HP in 2005 to engineer a major turnaround after the rocky reign of former CEO Carly Fiorina, has answered by aggressively cutting costs and positioning the company as a bigger challenger to IBM Corp. through the $13.9 billion acquisition of technology services provider Electronic Data Systems.
At the end of 2005, HP had sales of $86.7 billion and profit of $2.4 billion. When the company's current round of job cuts is complete -- HP is slashing 24,600 positions, nearly 8 percent of its 320,000 workers -- Hurd will have cut nearly 40,000 jobs in two big rounds of layoffs since he took the job. Under Hurd's watch, HP has also regained its title of world's biggest personal computer manufacturer from Dell Inc., though Dell has been stealing some of that ground back with a new retail strategy.
Hurd's changes have helped HP's bottom line but they did little to soothe investors' nerves in 2008, when HP's stock price bounced around before falling off sharply in September and October as the financial crisis worsened. The stock lost more than 25 percent of its value during the fiscal year. Many analysts say HP is vulnerable to the slowdown because of its exposure to the ailing consumer market through its personal computers and lucrative printer ink, and because it relies heavily on hardware sales, which have suffered as companies freeze information-technology spending.
Still, Hurd was rewarded in 2008 for steering the company to "exceptional and sustained" financial performance in his first three full years on the job. Hurd pulled down $23.9 million in performance-based cash bonuses in 2008, according to the filing, which was almost twice as much as the $13.3 million in cash bonuses he snagged in 2007.
Hurd, 52, was also rewarded with $7.9 million worth of stock-based compensation during the period, nearly $3 million less than in 2007. Hurd's compensation package also included more than $738,000 worth of additional compensation for things like: home security ($256,000), personal use of HP's corporate jet ($135,734) and a $71,000 mortgage subsidy Hurd is guaranteed for relocation expenses under his employment agreement.
Hurd's salary of $1.45 million increased only slightly over 2007.
HP also revealed in its proxy filing with the Securities and Exchange Commission that Richard Hackborn, an instrumental figure in building HP's printer division who served 33 years with HP before retiring in 1993, has decided not to stand for re-election to the board of directors at HP's annual shareholder meeting set for March 18. Hackborn has been an HP director since 1992.
The Associated Press' calculations of total pay includes salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations exclude changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.
Hurd, 52, saw the value of his compensation in fiscal 2008 jump 31 percent over the previous year, according to AP calculations. The increase reflects the prosperous period HP enjoyed before the economic meltdown hammered the stock and cut into HP's profit.
Hurd also exercised $10 million worth of stock options and had $15.7 million worth of HP stock vest during the period, according to a regulatory filing Tuesday by the Palo Alto, Calif.-based technology company.
The biggest chunk of Hurd's raise came from cash incentives based on HP's performance during the 2008 fiscal year, which ended Oct. 31 and was a banner year for the company. For the year, HP's profit rose 15 percent to $8.3 billion, while sales climbed 13 percent to $118.4 billion. Those were big gains for a company the size of HP, which has faced questions from Wall Street about its ability to continue improving sales and profit margins at a steady clip.
Hurd, who joined HP in 2005 to engineer a major turnaround after the rocky reign of former CEO Carly Fiorina, has answered by aggressively cutting costs and positioning the company as a bigger challenger to IBM Corp. through the $13.9 billion acquisition of technology services provider Electronic Data Systems.
At the end of 2005, HP had sales of $86.7 billion and profit of $2.4 billion. When the company's current round of job cuts is complete -- HP is slashing 24,600 positions, nearly 8 percent of its 320,000 workers -- Hurd will have cut nearly 40,000 jobs in two big rounds of layoffs since he took the job. Under Hurd's watch, HP has also regained its title of world's biggest personal computer manufacturer from Dell Inc., though Dell has been stealing some of that ground back with a new retail strategy.
Hurd's changes have helped HP's bottom line but they did little to soothe investors' nerves in 2008, when HP's stock price bounced around before falling off sharply in September and October as the financial crisis worsened. The stock lost more than 25 percent of its value during the fiscal year. Many analysts say HP is vulnerable to the slowdown because of its exposure to the ailing consumer market through its personal computers and lucrative printer ink, and because it relies heavily on hardware sales, which have suffered as companies freeze information-technology spending.
Still, Hurd was rewarded in 2008 for steering the company to "exceptional and sustained" financial performance in his first three full years on the job. Hurd pulled down $23.9 million in performance-based cash bonuses in 2008, according to the filing, which was almost twice as much as the $13.3 million in cash bonuses he snagged in 2007.
Hurd, 52, was also rewarded with $7.9 million worth of stock-based compensation during the period, nearly $3 million less than in 2007. Hurd's compensation package also included more than $738,000 worth of additional compensation for things like: home security ($256,000), personal use of HP's corporate jet ($135,734) and a $71,000 mortgage subsidy Hurd is guaranteed for relocation expenses under his employment agreement.
Hurd's salary of $1.45 million increased only slightly over 2007.
HP also revealed in its proxy filing with the Securities and Exchange Commission that Richard Hackborn, an instrumental figure in building HP's printer division who served 33 years with HP before retiring in 1993, has decided not to stand for re-election to the board of directors at HP's annual shareholder meeting set for March 18. Hackborn has been an HP director since 1992.
The Associated Press' calculations of total pay includes salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations exclude changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC.
In comments : depending on how you calculate, Hurd saw the value of his compensation in fiscal 2008 jump 68 percent over the previous year to $42.5 million !
Well, here is one person at HP who does not care that staff salary rises for FY09 are 0%.
RépondreSupprimerAll the 2008 pay executives numbers can be found into the SEC document at http://www.sec.gov/Archives/edgar/data/47217/000104746909000257/a2190057zdef14a.htm
RépondreSupprimerThere is a table page 44, summarizing the executive compensations.
From this document Mark Hurd earned 42.5 millions $ in 2008 (wrt to 25.2 m$ last year). All the others executives excepted Catherine Lesjak earned more than 20 millions $ each. (from 1.5 to 3 times their 2007 compensations)
Even if their compensations are mainly achieved with stocks and bonusses, you will even see that some of these these guys got a pay raise ! While in the same time, they forced all HP employees to have 0% salary increase in 2008.
You will also see (page 46) that HP paid more than 500 000$ in 2 years to Randy Mott lawyer's in order to defend him against litigation he got with former Dell's employees ??
You will also see that executives are allowed to use the HP planes for personnal purpose, and Mark Hurd used it more than double time during 2008 than in 2007. Knowing all travels have been cancelled following the 2008 results, this information is really ... how to say ...
I was expecting this document, hoping executives will be this year in tune with their claims around the crisis and restrictions and blah-blah.
By reading the document i can only stay shocked with no more voice out of my throat.
"We will take aggressive action on discretionary spending…And we’ll implement a number of cost saving initiatives that are going to be tough and that some people aren’t going to like…
RépondreSupprimer- Awards are suspended"
(Mark Hurd, November 24th)
"H-P also disclosed Tuesday that Chief Executive Mark Hurd received $42.5 million in total compensation last year, an increase from the $25.2 million he received in 2007." (AP, January 21, 2009)
"- There will be no salary increases, except where legally required" (November 24th)
"Hurd's salary of $1.45 million increased only slightly over 2007" [it remains to be seen what will happen in FY09; and what is a "slight" increase to $1.45 million?] (January 21)
Management said "where legally required" refers to "some countries (like France)". Surprise, it also means that executives whose pay is contractual--and thus legally required--get to keep their raises and/or awards (bonuses, stock, etc.) whereas the average employee has no such guarantees! (Don't you just love being reassured with the "truth" by our leaders all of the time?)
Also, the "freeze" is really a "wage cut" because of inflation (which is by some measures 5.7% in the U.S. for '08). But don't worry if you disagree with the "wage cut" phrase, true wage cuts on a scale not seen since the Great Depression may yet be in store for HP. Just read the news about other big companies adding wage cuts (5-20%) to their layoff measures.
Also, I've heard that some EDS employees had their promised salary increases for FY08 postponed because of the pending merger, and then simply erased after the merger. So their wage freeze was for the entire FY08 already, let alone FY09!
But, of course, none of them worked hard, contributing to HP's greatness. Not like Mr. Hurd, who pocketed all of his FY08 promised rewards. I wonder how many of his rewards were "taken" from other deserving employees', in effect taking their promised rewards, so he could keep his full amount and the company could still report it's billions in increased profit? But then again, he is worthy of his reward, and no other employee is.
Here is an interesting post about some of our top execs salaries :
RépondreSupprimerhttp://blogs.zdnet.com/BTL/?p=11558
Ironic to see that Mott is making more, running IT, than VJ who's running IPG.
And apparently, him & his family are big eater !
RépondreSupprimerHow Much Does It Cost To Feed Mark Hurd? About $240K :
http://money.cnn.com/news/newsfeeds/siliconalley/big-tech/2009_1_how_much_does_it_cost_to_feed_mark_hurd_about_240k_hpq.html
H-P chief's family sure likes to eat
RépondreSupprimerThe excellent Footnoted blog digs up a curious item in Hewlett-Packard's (HPQ) new proxy filing. CEO Mark Hurd was reimbursed $80,000 for taxes on meals eaten last year while on business travel with family members.
Since the $80,000 is just the taxes paid, it's tough to calculate the amount spent on those meals. Local tax rates vary across the country and all that.
But Footnoted figures that Hurd and family spent about $243,000 on food in one year. That's a lot of eating!
Hurd's 2008 compensation package, incidentally, rose significantly last year to either $42.5 million or $34 million, depending on how you calculate it.
As an HP employee who surpassed all his targets for FY08 and received 0.0% salary increase - I am disgusted. Mr. Hurd is a symbol of corporate greed. I am ashamed he works in the same company as me.
RépondreSupprimerAs an HP employee, this stinks of corporate greed. It is especially bad when Hurd has cut all raises for employees and eliminated thousands of jobs for hard working Americans in the US. As a stockholder of HP as well, I am selling all my shares because of this stupidity. This guy has done nothing but cut, cut and cut. When is Wall Street going to wake up about this? Probably when it is too late like Tyco, Ernon and others.
RépondreSupprimerMark Hurd just announced a pay cut across the board for HP employees. He will take a 20% pay cut (which still leaves him up 11% over last year, not to mention his bonuses and perks) and everyone else, who did not receive pay raises last year, will take a pay cut (minimum 2.5% to 15% depending on job function).
RépondreSupprimerThank you so very much for showing us how important we are to the company.
A pretty interesting blog :
RépondreSupprimerhttp://www.damiansaunders.net/2009/02/26/commentary/hp-pay-cuts-an-unfair-act-of-economic-opportunism-and-greed/
http://www.slideshare.net/tmeditor/extreme-inequality-starting-a-strategic-conversation
RépondreSupprimerTime to get serious guys - these pigs will bring down our democracy unless the 9,900 out of 10,000 get voting for change - pass this on, the time is now.....
"Whatever you can do, or dream you can do, begin it.
and today we were told no salary increased 3rd year in a row. Happy Place?
RépondreSupprimer