HP's Fiorina Gets $13.5 Million in Stock Options in '01

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Hewlett-Packard CEO Carly Fiorina was awarded $13.5 million worth of stock options in 2001 and $1 million in salary, the computer and printer company said Tuesday,

HP covered another roughly $250,000 of Fiorina's expenses, including $40,739 toward "company-required personal use of corporate aircraft" and $167,177 in housing assistance during the fiscal year, which ended on Oct. 31.

None of the top five Hewlett-Packard executives were awarded bonuses, since the company failed to meet its performance goals, the company said in its annual filing.

However, Fiorina's four top lieutenants got raises, ranging from $80,000 to $272,000, taking their salaries to between $625,000 and $925,000.

Fiorina, the driving force behind Hewlett-Packard's plan to buy Compaq Computer, also earned $1 million in salary in 2000, and got bonuses of $1.76 million.

The company used a standard formula to calculate that options she was awarded in 2001 were valued at $13.5 million.

She received 1 million options that expire in November 2010 and have a strike price of $35.13.

Since HP's current stock price is $20.94, those options and the rest of the roughly 3.8 million options she has been awarded in the last three years, could not be exercised at a profit today, HP said.

Hewlett-Packard has said that Fiorina and Compaq CEO Michael Capellas, as well as senior officers, would probably get raises after the merger, but they would not finish salary negotiations before the deal closes.

HP has reached some preliminary agreements with the executives, but negotiations are continuing on performance-based pay. The compensation committee also plans to consult outside compensation experts.

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