HP CEO Switch: Apotheker Gets $13 Million, Whitman Gets $1

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A Hewlett-Packard SEC filing last week shows that Leo Apotheker, HP's recently terminated president and CEO, will recieve over $13 million in pay and bonuses over the next 18 months.

Meanwhile, Margaret "Meg" Whitman, HP's new president and CEO, will receive a base salary of $1 and an expected a first-year bonus of between $2.4 million and $6 million.

HP on Thursday filed a Form 8-K with the Securities and Exchange Commission listing the severance pay, bonus, and benefits Apotheker can expect in the wake of his being fired last month by HP.

Apotheker, who was at the helm of HP only 11 months after replacing fired President and CEO Mark Hurd, will receive a severance payment of $7.2 million over the next 18 months, as well as a $2.4 million annual bonus as provided for under the Hewlett-Packard Company 2005 Pay-for-Results Plan.

Apotheker is also getting accelerated vesting of HP shares worth nearly $3.6 million, as well as 424,000 performance-based restricted stock units, the value of which depend on HP's shareholder return over a three-year period. He will also get such benefits as relocation and housing assistance, medical and dental benefits for 18 months, and reimbursement of up to $300,000 for the sale of his California home.

In addition to her annual base salary of $1, Whitman will eligible for up to 1.9 million shares of HP common stock at discounted prices over the next eight years, depending on how well share prices have done.

Whitman will also receive a target annual bonus of $2.4 million to $6 million for fiscal 2012.

Should Whitman follow her predecessors Apotheker and Hurd with "involuntary termination," Whitman will be eligible for a lump sun severance payment of 1.5 times her annual base salary and the average of her bonuses over the previous three years, according to the SEC filing.

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