HP Shareholders Approve Board, Reject Executive Pay

Lora Bentley

HP shareholders voted "no" at the company's annual meeting Wednesday when asked for their input on the compensation paid to former CEO Mark Hurd and current CEO Leo Apotheker.


SiliconValley.com reports the non-binding advisory vote was the first of its kind at HP after shareholders were given a say on pay last year. It follows Hurd's swift and surprising departure in the wake of scandal, as well as the revelation that Apotheker violated internal company rules when he participated in nominating new board members.


Even amid scandal, Hurd left the company with at least $12 million; Apotheker will reportedly make an estimated $47 million over three years.


Shareholders did approve the entire slate of directors, however, including the new members whom Apotheker was involved in nominating. Shareholder advisory firm Institutional Shareholder Services had recommended a no vote on the executive compensation packages as well as on the three board members Apotheker nominated.


HP defended the board members, assuring shareholders that Apotheker's participation in their nomination did not create a conflict of interest. As for the no vote on executive pay, board chairman Ray Lane says the company is already gathering feedback from shareholders regarding their specific objections to the pay packages.

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Mar 25, 2011 1:23 AM Steve Scott Steve Scott  says:

Yeah, the shareholders rejecting the "compensation package" of these two -- it's a real head-scratcher.  Frankly if the BOD thinks there's nothing wrong with this kind of money then they simply should be replaced.  Their bonuses, raises and severance packages should be roughly equivalent to everyone else in the company, so if any person gets caught doing things similar to Hurd, then they should be able to quit and get a year's salary.  If Apotheker does well this year, at his yearly review next year, he should get a 1%-2% raise and maybe a 2% bonus.


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