Former Hewlett-Packard (HPQ) chief Léo Apotheker, who was ousted last week after the company's stock lost nearly half its value during his 11-month tenure, is leaving with $13.2 million in cash and stock.
Newly appointed CEO Meg Whitman will join Silicon Valley's $1-a-year club, following the lead of Oracle (ORCL) chief Larry Ellison and Apple (AAPL) Chairman Steve Jobs, among others, although HP reported Thursday that Whitman will be eligible for stock options and an annual bonus of up to $6 million.
Apotheker, whose base salary was $1.2 million, will leave HP with $7.2 million in a cash severance payment, $2.4 million under a company bonus program known as "Pay for Results" and accelerated vesting of stock options worth $3.6 million, according to a filing that HP made with the Securities and Exchange Commission.
Under an agreement negotiated by the company and Apotheker, the former CEO also will keep about two-thirds of the performance-based restricted stock units that he was granted under his original contract, while renouncing the remainder. The value of the units Apotheker will receive -- roughly $10 million based on the current stock price -- will depend on the company's performance in future years.
HP also is paying for the German-born Apotheker to move his family to Belgium or France, where he had lived after serving as CEO of German software company SAP. The company also agreed to reimburse up to $300,000 for any loss he incurs in selling the $7 million home he purchased in Atherton last year.
Whitman, who is already a billionaire on the basis of stock and other earnings from her previous job as CEO of eBay (EBAY), will be paid a base salary of $1 a year. HP said her target annual bonus for 2012 is $2.4 million, but she could earn up to 2.5 times that amount if the company does well.
She also will receive options to buy 1.9 million shares in company stock over the next two years. Most of the options will be vested only if HP's stock value improves by 20 percent in the first year and an additional 20 percent in the second year.
HP's stock closed Thursday at $23.78, up 2.5 percent for the day. It was $42.49 on Nov. 1, the day Apotheker started as CEO but fell sharply in subsequent months and closed at $22.80 the day he was removed.
Contact Brandon Bailey at 408-920-5022; follow him at Twitter.com/BrandonBailey.