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HP CEO Whitman Earned $15.4 Mln In 2012

Computer and printer maker Hewlett-Packard Co.'s (HPQ) chief executive officer Margaret Whitman received compensation valued at $15.36 million in her first full year at the helm, even as the company reported a net loss for the year.

In a proxy filing, Palo, Alto, California-based HP said that Whitman received 70 percent of her targeted compensation for fiscal 2012 that ended October 31, while the company reported a net loss of $12.65 billion for the year.

Whitman's base salary for 2012 was $1, but she received a performance-related or PfR plan bonus of $1.69 million that was less than her target of $2.4 million.

In addition, she received $7.04 million in stock awards and $6.41 million in options, according to HP's filing with the Securities and Exchange Commission. Whitman's compensation in 2011 was $16.52 million.

The news comes after HP reported a fourth-quarter loss of $6.9 billion in November. The results were hurt by a hefty goodwill impairment charge related to the company's $11.7 billion acquisition of British software company Autonomy plc. For fiscal 2012, HP reported net loss of $12.65 billion or $6.41 per share, compared to profit of $7.07 billion or $3.32 per share in the prior year.

HP said in December that the U.S. Department of Justice opened an investigation relating to the company's allegations of accounting improprieties at Autonomy prior to its acquisition by HP.

Whitman, who was appointed as HP CEO in September 2011, has been making sweeping organizational changes for the past one year in a bid to make HP a leaner and meaner company.

In May 2012, HP said that it expected to eliminate about 27,000 employees by the end of fiscal year 2014 as part of a restructuring that is expected to generate annualized savings of $3.0 billion to $3.5 billion.

HP is scheduled to hold its annual meeting of stockholders on March 20 at the Computer History Museum in Mountain View, California. Shareholders will be able to vote on the company's executive compensation plan and the election of eleven directors, among other proposals.

Shareholders will also be allowed to vote on a proposal that will enable stockholders owning 3 percent or more of the company's shares for at least three years to nominate directors.

Among other top HP executives, Chief Financial Officer Catherine Lesjak received total compensation of $6.70 million in 2012, down from $11.01 million in the previous year.

Todd Bradley, Executive Vice President, Printing and Personal Systems Group, received compensation of $7.36 million in 2012, compared to $10.69 million in the preceding year.

HPQ closed Friday's trading at $16.16, down $0.12 or 0.74 percent on a volume of 39.14 million shares.

by RTT Staff Writer

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