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HP’s Whitman Earned $15 Million in 2012 After Target Miss

HP’s Whitman Earned $15 Million in 2012 After Target Miss
Meg Whitman, chief executive officer of Hewlett-Packard Co. Photographer: Scott Eells/Bloomberg

Hewlett-Packard Co.’s Meg Whitman received nearly $15.4 million in fiscal 2012, her first full year as chief executive officer, receiving only 70 percent of her targeted compensation as it posted a net loss for the year.

Whitman, who took a salary of $1 last year, reaped 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 yesterday. Whitman, who was already on the board, became CEO in September 2011, just before the end of that fiscal year. In that period, her compensation was $16.5 million.

Shares of Hewlett-Packard have declined 39 percent in the past year, as Whitman works to turn around the world’s biggest supplier of personal computers after five straight quarters of declining sales and years of botched deals, management tumult and strategic missteps. Some units may be disposed if they don’t meet goals, the company said in a Jan. 1 filing with the Securities and Exchange Commission.

The stock decline has reduced some executives’ pay from previous years, according to today’s filing. The final amount of certain restricted stock awards for Hewlett-Packard executives granted in November 2009 depended on the company’s share price performance against the Standard & Poor’s 500 Index over three years.

The company underperformed the index by a large enough amount that the executives received none of the stock. It fell 70 percent after dividends in the period, while the S&P 500 returned 45 percent.

Compensation Overhaul

Hewlett-Packard overhauled the compensation program last year and scrapped the practice of comparing the company’s stock performance to set pay. It’s now handing out stock options that vest if the stock price exceeds certain thresholds.

Among other top executives, Chief Financial Officer Cathie Lesjak earned $6.7 million last year, compared with $11 million in 2011. Executive vice president Todd Bradley, who heads the company’s personal computer and printer group, made $7.4 million in 2012, compared with $10.7 million the prior year.

Hewlett-Packard plans to hold its annual shareholder meeting on March 20 at the Computer History Museum in Mountain View, California, where stockholders will be able to vote on the company’s executive compensation plan and slate of directors.

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