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When Meg Whitman was appointed president and CEO of HP in 2011, the board established a salary of $1 per year, in light of the planned company turnaround she was to propel.
Her efforts have certainly paid off, as her salary was bumped up to $1.5 million in fiscal 2014.
“For fiscal 2014, considering the stage of our turnaround, the board decided it would be appropriate to begin paying Ms. Whitman a salary consistent with the median of our peer group companies,” said the company’s recent statutory filing.
In addition to the raise, Whitman, now the company’s chairman as well as president and CEO, took home a hefty compensation basket, including an incentive bonus of about $4.3 million, stock awards worth about $8.2 million, and stock options in the range of $5.4 million.
This totalled about $19.6 million, up by almost 11% from the $17.6 million she took home in fiscal 2013.
The decision to hike Whitmans’s base salary was, in part, based on benchmarking against the peer group, as mentioned in the company statement. This included data from companies such as Apple, General Electric, Chevron, and others.
The filing states that Whitman’s performance over the past year was measured on aspects such as continuing to execute the turnaround plan, driving cost structure savings, continuing to strengthen the leadership team, among others. Her actual performance as a percentage of target performance was pegged at 140%.
Whitman had been brought on board to “deliver improved execution and financial performance,” as stated in a company release at the time.
The company has since announced plans to split into two publicly-traded companies, which is expected to be complete by the end of this year, as part of HP’s five-year organisational turnaround plan.