New York, NY, United States (4E) – Hewlett-Packard chief executive Meg Whitman received over $15mn for the 2012 fiscal year, which is 70 per cent of her targeted compensation as company performance continues to tumble in her first full year in charge.
Most of Whitman’s $15.4mn compensation for the fiscal year ending Oct. 31, was in the form of stock awards and options. In addition to her $1mn salary, she also received a bonus of $1.7mn, which is below her full target of $2.4mn.
Shares of the company have fallen by 39 per cent over the past year even as Whitman tried to reverse the fortunes of the world’s biggest supplier of PCs, which has seen five consecutive quarters of dropping sales and years of strategic mistakes, management turmoil and bungled deals.
In H-P’s filing to the Securities and Exchange Commission, it states that the decline in the company’s stock price has reduced the pay of some of the company’s executives. In November 2009, Hewlett-Packard executives were awarded certain restricted shares that are priced depending on the performance of H-P stock against the S&P 500 Index over a three-year period.
The Palo Alto, Calif., technology company also stated in its proxy filing that it has introduced a plan giving major shareholders the right to nominate directors. The move is widely expected and it is seen as a major gain for activist investors.
As part of its agreement with Amalgamated Bank’s LongView Fund last year, H-P decided to include the proposal on its annual proxy statement. The fund held about 400,000 shares in the company at the time deal was signed in February 2012.