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HP to give CEO Meg Whitman $16.5m pay package, if she performs

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AP reports 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.

Meg Whitman HP (Verge original image)
Meg Whitman HP (Verge original image)

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.