HP CEO Meg Whitman gets big pay hike after 2013 stock rally

San Francisco: Hewlett-Packard Co. chief executive Meg Whitman gave up her symbolic $1 salary and now draws an annual base salary of $1.5 million, reflecting the 93% rise in the company’s stock so far this year.

Whitman, HP’s third CEO in four years, is steering the Silicon Valley giant through a years-long restructuring since inheriting in 2011 a company shaken by board changes, executive departures and fluctuating strategic decisions.

Investors have since credited her for bringing much-needed stability to HP, which she is trying to turn around through layoffs, cost cutting and expansion into fast-growing markets such as enterprise computing.

The new salary, effective 1 November, “brings Ms. Whitman’s salary to a competitive level among the salaries of the chief executive officers of HP’s peer companies”, the company said in a Securities and Exchange filing.

While Whitman drew a salary of only $1 in 2012, her total compensation was $1.99 million, including a $1.69 million bonus and vested stock and options.

HP’s stock, however, at Tuesday’s close of $27.45, remains well off its 2010 high of above $50, prior to the departure of Wall Street favourite and former CEO Mark Hurd.

From the time Whitman joined in September 2011, HP’s stock has risen just 14.5% compared with the S&P 500 index, which is up 51% over the same period. Reuters