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E-COMMERCE INFRASTRUCTURE SECURITY
BUSINESS BOARDROOM WALL STREET
February 18, 2005
GLOBAL TRENDS SMALL BUSINESS
VIEWPOINT LEGAL ENTERTAINMENT
BUSINESS

HP To Pay Fiorina $21 Million Severance Package

HP To Pay Fiorina $21 Million Severance Package

HP paid Carly Fiorina US$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 the company had failed to reach its performance targets.


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Ousted Hewlett-Packard (NYSE: HPQ) Buy the new HP Compaq nc6220 Notebook and get a FREE HP IPAQ, HP printer or HP digital camera. Latest News about Hewlett-Packard 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.

Hefty Package

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.

Security, Support

In addition to computer support, the former chief executive will get six months of administrative support and one-year of home security Get a Free E-Commerce Start-up Kit from Verisign services at HP's expense.

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.

Q4 Bonus

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.

© 2005 AFX News Ltd.. All rights reserved.
© 2005 ECT News Network. All rights reserved.

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