Haven’t we learned anything from the financial crisis? For example, why do CEO’s deserve signing bonuses that are big enough to save a small nation? Hewlett Packard has hired Leo Apotheker as the company’s new CEO, and he’ll bank a load of cash. He will receive an annual salary of $1.2 million and a $4 million signing bonus! If that’s not enough to make ends meet, Hewlett Packard announced that the 57-year-old will also be in the running to receive cash incentives if HP hits certain performance goals each year. What a life!
Leo Apotheker, the former SAP exec, lost his job earlier this year and his new role at Hewlett Packard has apparently disappointed investors. Apotheker takes over for former HP CEO Mark Hurd on November 1st. As we all remember, an embarrassed Hurd stepped down two months ago after he was found to have violated the company’s ethical standards. HP feels like they’ve found the best man for the job, but others aren’t convinced.
‘SAP’s customer relationships suffered badly and so did employee morale while (Apotheker) was there, so this is a bit of an odd choice by HP’ said software analyst Paul Hamerman of Forrester Research.
HP stocks were down 3% before the market opened this morning at $40.80.