Ousted Hewlett-Packard (NYSE: HPQ) Chairman and CEO Carly Fiorina will get a severance package worth more than US$21 million, according to a proxy statement filed with the U.S. Securities and Exchange Commission.
Under the severance agreement, Fiorina will get $14 million in cash, which is 2.5 times her base salary and target bonus.
Hewlett-Packard also will pay her $5.88 million under its 2003-2004 long-term performance cash program, and $1.5 million, which is the prorated amount of her awards under the 2004-2005 program.
The Palo Alto, Calif.-based computer company said that her package includes the vesting of about $6.07 million in HP stock options with an exercise price of $35.73, well above its Friday closing price of $21.30.
Fiorina also will receive $50,000 for financial counseling, legal and outplacement services and she will be permitted to keep her personal computer equipment and receive technical support for three months.
The company paid her $1 million, out of a $1.57 million bonus, in the first half of 2004, but withheld the remaining balance in the second-half of the year because it was contingent upon "pay-for-results" and HP said in the filing that the company had failed to reach its performance targets.
However, in December, just two months before she left the company, HP awarded her a $567,000 bonus based on HP's fourth-quarter performance.
Shares of HP closed down 18 cents at $21.30 in Friday's regular session, but traded 6 cents higher to $21.36 after the bell.
The company is scheduled to report first-quarter results on Wednesday.
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