Sept. 29 (Bloomberg) -- Former Hewlett-Packard Co. Chief Executive Officer Leo Apotheker, ousted last week after overseeing a 46 percent drop in the company’s stock price during his 11-month tenure, will receive a $7.2 million severance.
Apotheker also will get an annual bonus of $2.4 million under a “Pay-For-Results” company policy started in 2005, along with accelerated vesting of stock options with another $3.56 million, according a regulatory filing today from Palo Alto, California-based Hewlett Packard. Apotheker also is receiving 424,000 additional “performance-based restricted stock options” worth $10 million based on today’s stock price.
The company also said newly installed CEO Meg Whitman, 55, is taking a $1 a year salary, along with a target annual bonus for 2012 of $2.4 million. She also has the option of purchasing up to 1.9 million shares, the company said.
Apotheker, 58, was ousted Sept. 22 after cutting sales forecasts three times and making strategy shifts that blindsided investors. Whitman, the former EBay Inc. CEO and California gubernatorial candidate, was named chief executive, with venture capitalist Ray Lane becoming executive chairman.
The company also will pay for Apotheker and his family to return to France or Belgium, and up to $300,000 for any loss the former CEO incurs with the sale of his home in California, the filing said.
Hewlett-Packard rose 2.5 percent to $23.78 in New York Stock Exchange trading at 4:15 p.m. The shares have risen 4.3 percent since Sept. 22, when the leadership change was made.
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