Hewlett-Packard is getting more stingy with its CEO pay and benefits, according to a regulatory filing made late on Thursday. Given what it has just cost the company for 11 months’ service from Léo Apotheker – up to $33m, by our calculations – this should come as some relief for its long-suffering shareholders. Read more
Leo Apotheker has just added a valuable new euphemism to the business lexicon. In striving to maintain the profit margin in its services division, he said, HP had “over-executed operationally.” That’s a justification other CEOs will no doubt rush to take up to explain away their companies’ over-zealous, but misguided, efforts.
But if HP is executing so well on its current business and failing to invest in the future, as Mr Apotheker suggested, then why is the lower margin now projected for the division closely tied to existing contracts? Read more
After the mess of Mark Hurd’s departure, it’s good to see that Hewlett-Packard’s board has learnt a few lessons.
Leo Apotheker’s employment contract, on file today with the SEC, reveals that the new CEO has no guaranteed contract term. Instead, he is employed “at will”, which effectively makes it easier for the company to dispense with his services any time it likes.
Perhaps even more important is HP’s stipulation of the circumstances in which it can sack Mr Apotheker “for cause” – another glaring omission from the Hurd contract, and an issue over which HP has been heavily criticised. Read more