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Fiorina to get millions, home security

Her severance package includes $21.38M in cash

By Joris Evers
February 14, 2005 12:00 PM ET

IDG News Service - In a filing with the U.S. Securities and Exchange Commission, Hewlett-Packard Co. on Friday detailed the severance package for former Chairman and CEO Carly Fiorina, who will get a cash payout of $21.38 million, as well as $50,000 for financial counseling and legal and outplacement services.
Fiorina also gets to keep her PC equipment and technical support for a three-month period, HP said in the filing. In addition, the company will provide the former executive with administrative support for a six-month period and maintenance of her home-security system for a one-year period, according to the filing.
The $21.38 million cash payout consists of a $14 million payment that represents 2.5 times Fiorina's base salary and targeted annual cash bonus as well as a $7.38 million payment that's part of an HP incentive program called the long-term performance cash program, according to the filing. In addition, Fiorina will receive an unspecified cash payment for the balance of her unused vacation time.
The $14 million is payable in six months after the agreement date, with interest at an annual rate of 2.78%, HP said. The severance agreement is dated Feb. 8. It is subject to a seven-day revocation right on the part of Fiorina. If she doesn't revoke it, the agreement will become effective on Feb. 15.

Reprinted with permission from Story copyright 2014 International Data Group. All rights reserved.
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