HP disclosed its employment agreement with new president and CEO Leo Apotheker in a filing with the US Securities and Exchange Commission on Friday. Among the highlights are a $4 million signing bonus and $4.6 million in relocation benefits for Apotheker, who is set to take the company reins on 1 November.
Specifically, the agreement calls for Apotheker to receive compensation including:
- $1.2 million base salary.
- Performance-based cash bonus for fiscal 2011 equal to at least $2.4 million and up to as much as $6 million.
- $4 million signing bonus, which Apotheker is due to receive in 60 days.* $4.6 million relocation allowance ($2.9 for relocation and $1.7 million for payments and benefits that Apotheker is forfeiting from his prior employment).
- Sign-on stock grants, including 80,000 restricted shares of HP stock that will vest over the next two years and 120,000 shares tied to HP's financial performance targets over a three-year period (the performance-based shares will vest over the next three years).
- Long-term stock grants, including 76,000 restricted shares of HP stock that will vest over the next two years; and 608,000 shares, vesting over the next three years, that are tied to HP's financial performance.
Other company perks Apotheker is entitled to include access to company aircraft and personal security services.
HP announced Apotheker's appointment on Thursday, ending weeks of speculation about who would fill the empty CEO position. In addition, HP announced that Ray Lane, managing partner at Kleiner Perkins Caufield & Byers, is joining its board and will serve as non-executive chairman.