Fiorina: Post-Merger Pay Package Does Not Exist

Hewlett-Packard

Speaking at the company's twice-annual meeting with financial analysts, Fiorina took issue with statements released late Tuesday by Hewlett, saying she stood to make $70 million a year in cash and stock if the Compaq merger took place. Fiorina disputed that charge, saying any package would be up to a post-merger board to approve.

"We can't disclose employee contracts [that do not exist," Fiorina said.

That the charge was released on the eve of the critical day-long session was likely more than a coincidence, Fiorina said. In addition, she fired a shot at "a focus and execute" plan Hewlett put forth last week. In that plan, the dissident HP board member, who is fighting the proposed merger, said the Palo Alto, Calif.-based company should focus on its printing and imaging business and move forward as a stand-alone company. Hewlett said such a strategy could raise HP's per-share value by as much as $17.

"That's not a plan, that's a press release," Fiorina said.

Fiorina opened the conference by saying she believed a fully integrated company could begin operating April 1. She reiterated projections that a merged company would see $2 billion in annual cost savings by the end of next year, as well as sizable increases in its operating margins.

In addition, she pointed out once again that a merger with Houston-based Compaq would make the combined company a market-share leader in Windows-, Linux- and Unix-based systems.

Fiorina also made a spirited defense of HP's PC business. She continued to maintain the business would continue to help HP in its enterprise and printing businesses, as well as deliver three points of operating margin by the end of next year.