Hewlett-Packard will pay new CEO Leo Apotheker an annual salary of $US1.2 million, plus a $US4 million signing bonus, as the former SAP CEO gets set to take the reins at the tech giant.
According to HP's filing with the Securities and Exchange Commission, HP will pay Apotheker an annual salary of $US1.2 million for the next two years. After that, the board will review his compensation.
In addition, HP's new CEO will receive an annual incentive of at least 200 percent up to a maximum of 500 percent of his base salary for fiscal 2011, which means his minimum pay will exceed $US3.5 million. Along with the hefty $US4 million signing bonus, Apotheker, who will move from Germany to the U.S. to pilot HP, will receive $US4.6 million for what HP called a "relocation allowance" in its SEC filing. Apotheker, 57, will also receive 76,000 HP shares.
HP on Thursday named Apotheker to succeed Mark Hurd as its CEO effective Nov. 1. Hurd, who was recently named a co-president at Oracle, resigned from his CEO post at Palo Alto, Calif.-based HP in August.
Apotheker spent more than 20 years at SAP as the company saw 18 consecutive quarters of double-digit software revenue growth between 2004 and 2009. He resigned as head of the German software giant in February after serving in the top spot since May 2009.
HP's appointment of Apotheker as its new CEO has VARs questioning his credibility and channel friendliness and many wondering who he is and if he has the chops to lead HP in the wake of Hurd's departure.