Hewlett-Packard Co. (HPQ) raised the annual salary of Chief Executive Officer Meg Whitman to $1.5 million from $1.
Whitman’s base pay was increased to bring her compensation “to a competitive level among the salaries of the chief executive officers of HP’s peer companies,” Hewlett-Packard said yesterday in a filing to the U.S. Securities and Exchange Commission. The raise is effective retroactively to Nov. 1, the Palo Alto, California-based technology company said.
Hired in 2011 to revitalize Hewlett-Packard, Whitman, 57, is contending with declining sales from slow demand for personal computers and stepped up competition in the business-technology market. The company’s shares have surged 93 percent this year in New York after falling for three consecutive years.
Whitman was paid almost $15.4 million in total compensation in fiscal 2012, her first full year as CEO, receiving 70 percent of her targeted compensation as the company posted a net loss for the year. That included a performance-related bonus of $1.7 million, more than $7 million in stock awards and $6.4 million in options, Hewlett-Packard said in a filing in January.
Michael Thacker, a spokesman for Hewlett-Packard, didn’t immediately respond to a request for comment.
Whitman told analysts in November she’s anticipating “headwinds almost across the board” in the coming year amid weakness in some international markets. She made the remarks after the company posted fiscal fourth-quarter revenue and profit that topped analysts’ estimates. Results were buoyed by corporate demand for servers, PCs and networking equipment.
Net income was $1.41 billion, or 73 cents a share, compared with a $6.85 billion loss, or $3.49 a share, in the fourth quarter of last year. Revenue was $29.1 billion, compared with $29.96 billion a year earlier.
Whitman is trying to make the most of a technology behemoth that sells everything from PCs and home printers to the servers, networking gear and software that power corporate data centers. Hewlett-Packard is behind in mobile computing, where tastes are shifting from notebooks to tablet computers and smartphones, and is competing with healthier rivals including Apple Inc. and Samsung Electronics Co.
Hewlett-Packard rose 2 percent to $27.45 at the close in New York.