Salary Hike For Hewlett-Packard Company (NYSE:HPQ)’s CEO Meg Whitman

Posted by George Brook December 18, 2013 0 Comment 1584 views

Hewlett-Packard Company (NYSE:HPQ)’s stock prices have almost doubled year to date outshining the rival firms Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) which have grown 4.3% and 36.7% in the same period. Its previous closing of $27.45 suggests 106.77% gains from its 52 week low of $13.28 and is just 3.85% below its recent 52 week high of $28.55 which was marked earlier this month.

CEO’s Salary Hike

This surge in Hewlett-Packard Company (NYSE:HPQ)’s stock prices allowed it to increase its Chief Executive Officer, Meg Whitman’s pay package by multiple folds from symbolic $1 to $1.5 million. The recent year rally could certainly be attributed to Whitman’s strategic leadership that brought in much-needed stability to the company especially when it was dealing with fluctuating strategic decisions, executive departures and some unwelcoming board changes.

Hewlett-Packard Company (NYSE:HPQ) said in a Securities and Exchange filing that the new salary will be paid with effect from November 1, 2013. Even in 2012, in which the CEO drew only $1 in salary, her total compensation included $1.69 million bonus and vested stock and options, aggregating $1.99 million in total compensation.

Overall Scenario

Late in October 2013, GMI Ratings released its 2013 CEO Pay Survey that collected data from over 2,250 CEOs of North American publicly traded companies. The Survey revealed Mark Zuckerberg of Facebook Inc. (NASDAQ:FB) as the highest paid CEO of 2012 with a total actual compensation of $2.27 billion. Following on the list was Richard D. Kinder of Kinder Morgan Inc. (NYSE:KMI) with a total compensation of $1.11 billion and Mel Karmazin of Sirius XM Radio Inc. with $255.3 million compensation. Apple Inc. (NASDAQ:AAPL)’s Timothy D. Cook was ranked 5th in the list.

Among other findings, the survey for the first time identified 2 of top 10 CEOs with more than $1 billion compensation in a single year. Moreover on an average, pay increased by 8.47% across a sample of around 2,200 North American CEOs.

About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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