Hurd's HP severance: $12.2M cash, $16M in stock

Ousted CEO Mark Hurd is departing HP with a hefty severance package, including a $12.2 million cash payment and HP stock worth about $16 million, according to a report filed Friday with the U.S. Securities and Exchange Commission.

Also see: How much Hurd and other tech CEOs made last year

Hurd, who is accused of sexually harassing a former contractor to the company, resigned on Aug. 6. According to his agreement with HP, he's due to receive:

* A severance payment of $12.2 million.

* An extension of the deadline for exercising his outstanding options until Sept. 7. This allows Hurd to purchase up to 775,000 HP shares that became vested as of the date of his resignation.

* Receipt of 330,177 performance-based stock units. These shares were granted to Hurd on Jan. 17, 2008, and tied to HP's performance from that date until the date of his resignation. Based on the $46.30 closing price of HP's stock on Friday, these shares are worth about $15.3 million.

* Settlement on Dec. 11 of an additional 15,853 time-based stock units that were granted to Hurd last year. These stock units will be settled at either the closing price of HP's common stock on Aug. 6 or the closing price on Dec. 11 – whichever is the lesser amount. Based on Friday's $46.30 closing price, these shares would be worth about $733,994.

Read more about data center in Network World's Data Center section.

This story, "Hurd's HP severance: $12.2M cash, $16M in stock" was originally published by Network World.

Copyright © 2010 IDG Communications, Inc.

7 inconvenient truths about the hybrid work trend
Shop Tech Products at Amazon