HP CEO Gets $8.6 Million Bonus in 2006
SAN
JOSE, Calif. (Jan. 07) – Hewlett-Packard Co. said Tuesday that CEO
Mark Hurd received an $8.6 million bonus in 2006, a year of strong
performance but one plagued by scandal over its shady boardroom spying
antics.In its proxy filing with the Securities and Exchange Commission,
HP said Hurd received the bonus on top of his $1.4 million base salary
for his strong leadership in helping the company grow and become more
efficient.The computer and printer maker surged past International
Business Machines Corp. last year to become the world’s largest
technology company.HP’s stock price has risen 95 percent since Hurd
became CEO in April 2005, creating an additional $52 billion in
shareholder wealth. HP’s stock rose 29 cents to close Tuesday at $42.31
on the New York Stock Exchange.The year proved to be a double-edged
sword for HP, as investors applauded the company’s gangbusters
operational efficiency.But Hurd briefly came under scrutiny when the
company’s shady surveillance scheme to ferret out the source of
boardroom leaks to the media also became public.Hurd said he didn’t
know about the deceptive tactics used to unearth the private phone logs
of HP board members, journalists and their family members. He was not
charged in the case, but felony charges were filed in California
against former Chairwoman Patricia Dunn, former ethics chief Kevin
Hunsaker, and three outside investigators.Investors largely ignored the
scandal, focusing instead on major operational milestones for the Palo
Alto-based company.In fiscal-year 2006, HP cracked $90 billion in
annual revenue for the first time in the company’s history. Its $91.7
billion in revenue was slightly more than IBM ‘s $91.4 billion.HP’s
strong sales of personal computers helped fuel much of that growth, as
the company snatched the No. 1 ranking in worldwide personal computer
shipments from Round Rock, Texas-based rival Dell Inc., according to
data from market research firms Gartner Inc. and IDC.Hurd’s award for
the year also included options on 500,000 shares of HP stock, according
to the filing.The company said Hurd’s compensation was justified “based
on HP’s achievement of significant financial and restructuring goals
during fiscal 2006, Mr. Hurd’s role in leading HP to these strong
financial results, and Mr. Hurd’s attainment of nonfinancial
performance goals.”