by Julianne Pepitone, CNN Money, Sept. 30, 2011
But don’t feel too sorry for Whitman: She’s eligible for millions in cash bonuses and stock options, according to HP’s regulatory filing late Thursday.
Whitman’s target bonus for HP’s 2012 fiscal year is $2.4 million, and she could get as much as $6 million if the company hits certain performance goals.
Her contract also includes an option to purchase 1.9 million shares of HP stock, which fully vest if she’s at HP for three years. The exercise price on the options is $23.59, HP’s closing share price on Sept. 27, the date Whitman’s stock grant took effect.
That means Whitman’s HP stock options will only be profitable if the company’s share price goes up — and the shares will only fully vest if HP’s share price rises by at least 40%.
Her contract includes no special severance benefits if she is ousted beyond a lump-sum payment of 1.5 times her annual salary. That would net Whitman a grand total of $1.50.
Interesting idea, and a good, clear explanation from CNN Money.
