Meg Whitman’s salary “cut” at HP, “only” gets $15m for bad 1st year

Wow, must be a hard life when you fail to meet your annual targets, like HP CEO Meg Whitman did in her first year on the job, so you “only” get $15 million for a year’s work as “punishment.”

Meg Whitman the CEO of the Hewlett-Packard Company or the HP Co. has received a lesser annual compensation. According to reports Whitman has received a compensation of $15.4 million in the year 2012. It is to be mentioned that the amount is only seventy percent of the targeted compensation. It was a year in which Autonomy debacle happened also Meg Whitman completed one year as CEO of Hewlett-Packard Company.

Hey HP, punish me!

Granted, Whitman is not yet in the “$40 million ‘retirement’ “ category that that other failed-GOP-candidate Carly Fiorina attained, but she’s doing okay at a cool 15 mil.

HP is doing less well.  The company has been in a downward spiral for a while, yet they keep throwing wads of cash at their senior executives, somehow hoping that big money will solve their big problems.

In the case of Meg Whitman, her record at HP has been less than impressive — though she’s now on target to make $30 million in her first two years. Not too shabby when you consider the $13 billion – yes, billion – loss for HP’s last fiscal year under her watch. In addition, HP’s stock has lost about half of its value.

There’s something horribly wrong in corporate America when failure is so consistently rewarded at the top.  Rewarding mediocre to bad results hardly seems like a viable plan for the future.

How could any board of directors possibly approve this?

Meg Whitman could get more than $15 million for her first year as CEO of Hewlett-Packard, according to company filings.

It’s a big payday even by the lofty standards of big-time CEOs. The chief executives of major public companies made a median of $9.6 million in 2011, the most recent year available, according to executive pay research firm Equilar.

An American in Paris, France. BA in History & Political Science from Ohio State. Provided consulting services to US software startups, launching new business overseas that have both IPO’d and sold to well-known global software companies. Currently launching a new cloud-based startup. Full bio here.

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19 Responses to “Meg Whitman’s salary “cut” at HP, “only” gets $15m for bad 1st year”

  1. kings4a says:

    Hewlett Packard was in trouble when Meg arrived. As a long time HP customer i applaud her attempt to revive HP’s tarnished reputation. I had an HP printer that when it decided it was low on toner it would quit period. It didn’t matter that you were printing your tax return on April 15 or a business proposal due the next day. Total focus on wrenching every dollar from the customer. Meg is trying to change that. The M series (Meg?) printers allow you to select 1. Quit 2. Warn or 3 keep going. She is also making the customer service and warranty service more user friendly. No one can turn around a company in a day and HP has a long way to go. I can tell you that the HP reputation is poor among the user community. Meg understands that the success of the company is with the satisfaction of its customers and she can’t do it all at once.

  2. HP Employee says:

    HP – one of the most corrupt companies in the world. Even the former CEO got $40m after he got fired for sexual harrassment and fiddling expenses. Meg is no different, just as unethical, immoral and greedy as the rest.

  3. OtterQueen says:

    What do you have against boobies?

  4. karmanot says:

    Meg Whitman—a country club Sarah Palin with maids. If only she would just go away.

  5. manzell says:

    I would like to see a reasonable “defense” of this, as to me it isn’t so simple. I’ll assume the people on the board of directors aren’t idiots and are profit driven. What’s the “replacement level” CEO going to produce?

  6. eahopp says:

    Gee, if I did as bad of a job as Whitman, my salary would have been cut by 100 percent, and my benefit would have been a cardboard box. Must be really nice to be a CEO.

    Does WalMart sell tar and feathers?

  7. mr_ed says:

    Way too many zeroes.

  8. nicho says:

    I’m pretty sure this isn’t “salary.” They made a big deal that her salary will be $1 a year, on which she will be taxed at ordinary rates. This is some other form of “compensation,” which will be taxed at a minimal rate — far less than what you and I pay.

  9. Roberta Eidman says:

    And to think she was running for Governor of CA in 2008, touting her fabled business acumen. I find it super delicious that this very week Jerry Brown was able to announce that for the first time in 10 years, CA was out of deficit.

  10. karmanot says:

    True from excellence to this clown show.

  11. lynchie says:

    Shitty job done=$15 million. Next step lay off a bunch of middle management people and labor in the plants, move all manufacturing to China and a bonus in 2013. Incompetence is rewarded at the top but the people at the bottom pay for it.

  12. Naja pallida says:

    They don’t mention that part of her contract also allows her to buy a huge quantity of shares of the company at a below-current-market value, if she were so inclined… really though, if they halved executive compensation across the board, at a time when they were failing to do their job effectively, the company could claim they were at least breaking even – instead of posting a loss, which ultimately hurts stock value and the company’s overall brand, and allowing these failures to line their pockets while steadily driving the company into the dirt. This is just an example of how at the executive level, people just jump from company to company, wherever they think they can get the easiest payday for the least amount of effort.

  13. FunMe says:

    So that’s where she ended up!

    And she wanted to be governor of California? Thank goodness we voters kicked her out of our state government.

  14. condew says:

    Can I have her job for 1 month?

    I think I could do it better, and if not, after banking $1.25 mil I wouldn’t mind being fired if I didn’t.

  15. EtaoinShrdlu says:

    Since the deaths of Bill Hewlett and David Packard, the H-P board has been a joke in Silicon Valley. If ever there was a case for incompetence, the H-P board would win the (booby) prize.

  16. karmanot says:

    A close look at Meg’s resume will show how successfully she has failed upward.

  17. karmanot says:

    Poor HP: garbage in, garbage out. First Fiorina and now the grifter Whitman.

  18. Houndentenor says:

    The board approved this because they all make far more than that per year and really do think this is punishment for poor performance. I worked for people at that level for a few years in lower Manhattan so this doesn’t surprise me in the least. Besides, if they fired her, that golden parachute amount would easily be 10x that amount.

  19. BeccaM says:

    For ordinary hourly and salaried workers, this level of failure and rank incompetence would result in being fired. And the parting message would be, “Don’t ask for a professional reference, because you won’t get one. In fact, anybody who asks us will be told you were fired for good cause.”

    But for the rentier class, our plutocratic oligarchs, there is no ‘failure’, no being fired. All that happens is maybe — just maybe — your bonus is a little bit smaller…but you still walk away with tens of millions of dollars and guaranteed employment for as long as you care to keep raking in the Benjamins.

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