The AP is reporting that HP has awarded its new CEO Meg Whitman a $16.5 million pay package, but to reap the full amount she'll have to resurrect the company's stock price over the next two years. While performance-based CEO pay packages of this magnitude are not uncommon at Whitman's level, it appears as if HP is dialing back its executive compensation: Whitman's predecessor, Leo Apotheker, floated off the company's payroll with a $25 million cash-and-stock severance package after controversially scuttling WebOS devices and mulling the end of HP's PC business.

As for Whitman, her rights to 800,000 stock options will vest on her one-year anniversary at HP if the company's share price closes above $28.31 for 20 consecutive days, with another 800,000 shares vesting on her two-year anniversary if the stock price closes above $33.03 for 20 consecutive days — as of this morning, HP's stocks sat at $28.83. While Whitman stands to have a nice payday if HP's fortunes continue to improve, it seems that the company's board is making it clear that it's serious about results.