HP Spent Over $80M To Get Rid of Its CEOs

hapworth writes "Analysis published today shows that Hewlett-Packard has shelled out over $80 million to get rid of three CEOs since 2005. The first CEO to take her expensive exit, Carly Fiorina, received over $42 million, once stocks, options, and pension are factored in. Mark Hurd, after just four years, received $12.2 million to take his exit; and now, after 11 months, Leo Apotheker will walk out with a reported $25.2 million in severance. With eBay's Meg Whitman in as the new CEO at HP, industry analyst Robert McGarvey writes today that 'the HP gig could help Whitman replenish her personal coffers, depleted by the pumping of $119 million into a futile bid to become California's governor.'"

Where are the shareholders?

[bill_mcgonigle]

The Board keeps choosing bad CEO's. Why do the shareholders keep re-electing them? Where are the institutional investors on this? I guess it's their company to destroy, if they really want to.

Interesting...

[Ecuador]

The one who was considered successful by all (Hurd) was the one with the least compensation (by a huge margin if you consider his years on the job vs Apotheker). It is no joke we say the worse you do as a CEO the more money they pay you!

Golden parachutes....

[luis_a_espinal]

... should be tied with performance measurements meeting certain baselines - reduce waste (not the same as reducing cost), or increase profits by % - that are established at the time of hiring instead of being given wholesome at the exit door. Then again, I might as well wait for pigs to fly.

Re:Where are the shareholders?

[LWATCDR]

The problem is professional CEOs. They go from company to company and really don't care about anything long term. Isn't there one person that has worked at HP all their life that can step up and be CEO?

Why does this happen?

[MrCrassic]

Why is it that even poorly-performing CEO's get incredibly huge severance packages? I can understand CEOs that actually helped raise a company getting nice parting gifts (like Lou Gerstner and Bill Gates), but shouldn't leaders that, effectively, failed to lead? get much, much less?

Re:Where are the shareholders?

[doconnor]

One problem with shareholder democracy is that if a shareholder doesn't like the management of the company it is far easier for them to sell the stock and forget about it then to work to elect better management.

A lot of people have been selling their HP stock recently.

Re:So HP is learning painfully expensive lessons

[ceoyoyo]

"but we are talking about the one in a million type person/personality types. Just like there is little chance any kid you went to school with would ever be a NBA/NFL star or Hollywood A-lister (or even B and C) their chance at this level is equally small."

Hm... maybe that's the problem. HP (and other companies) should stop hiring one in a million, self-important sociopaths with overly inflated egos and try some normal, competent people.

Re:So HP is learning painfully expensive lessons

[peragrin]

Normal people arent competent.

Competent people are harder to find than 1 in a million.

Re:I've got a better deal

[cayenne8]

What does one study to become a CEO??

I'd love to get that job...tons of money when you're there...tons when you leave, and then...it seems, there are job opportunities after you leave, even in disgrace.

I don't see any perceptible skills required to be a CEO...is it all only who you know?

I mean, I'm member and good standing with the "anything for a dollar" club....so, wondering how I could get into the CEO business, and yes...I'm quite willing to sell shares of my soul for this.

:)

Re:I've got a better deal

[cHiphead]

I know someone who's MBA finals involved take home tests with direct questions and essays. I looked at his test, then proceeded to explain to him how business works and basically did an entire portion of his test based on the IT related business market... I was floored and exploded about it.. THIS IS WHAT THESE ASSHOLES ARE LEARNING? THIS IS GENERIC BUSINESS STUFF that anyone working and interacting with businesses will learn. ITS LAUGHABLE that they are paying to 'learn' this and shows just how bad their financial acumen is if they are plopping 50-100 grand on it. Smoke and mirrors, all the way down. They get fancy University titles, while folks without college degrees get labelled Con Men.

This has been a production of the MONDAY HATE TRAIN. Its just one of those days.