Meg Whitman's $US17.6 Million 2013 Paycheck Included A 132% Bonus

Meg WhitmanHPHP CEO Meg Whitman

As HP’s stock rebounds back to the near-$30 mark, where it was trading before HP hired CEO Meg Whitman in 2011, Whitman got a nice raise in 2013.

Her total compensation was up to $US17.6 million, with $US12.7 million of that in stock options and $US4.4 million in stock awards.

That’s more than $US2 million more over 2012, when her total compensation was $US15.4 million. It was a nice chunk of money above the $US16.4 million that HP had planned to pay her for 2013, too, it said.

The extra income mostly came from her $US3.97 million bonus, which was 132.3% of her target, HP said in documents filed with the SEC.

Her bonus was supposed to be $US3 million in cash. But because HP’s stock has rebounded, her stock grants wound up worth about $US3.71 million more than planned, not leaving room in her compensation plan to give her the cash. So the board decided to “offset” the fact that her stock was worth more by paying her an additional $US260,000 in cash.

Whitman, a self-made billionaire, with a net worth about $US1.9 billion, according to Forbes, has only taken $US1 in salary since she joined the company in 2011. That will change in 2014, when she’ll start to get a base salary of $US1.5 million, as first spotted by Re/code’s Arik Hesseldahl.

Whitman is leading HP through a multiyear turnaround to find growth again. While 2013 was a better year than than 2012, she hasn’t yet stopped the shrinkage.

At the end of 2011 when Whitman took over, HP’s revenues were $US127.4 billion. At the end of 2012, they were $120.4 billion (down 5%), and in 2013 revenue was $US112.3 billion, down 7%.

Whitman at first promised that 2014 would be a year of meaningful growth, but, in October, pushed back her timetable. She’s now saying that HP will stop shrinking in 2014.

There’s also been plenty of drama so far under her helm, including accusations of alleged accounting fraud at Autonomy, the $US11 billion big-data software company that HP acquired shortly before Whitman was named CEO; a huge multiyear 34,000-job layoff; and a shakeup of the board that caused two board members to resign and one to step down as chairman.

Still, HP needs her to stay the course, and confidence is slowly rising in her ability to do so, both from employees and the market.

But we can’t help compare Whitman’s $US260,000 bonus with IBM CEO Ginni Rometty’s decision not to pay IBM senior execs their cash bonuses for 2013, thanks to IBM’s shrinking revenues and profits.

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