HP’s new chief information officer Randall Mott will
receive a financial package worth around $15m (£8.5m) after being
poached from Dell.
As well as pocketing a big signing-on fee, former Walmart CIO
Mott will be eligible for preferential shareholdings and
bonuses.
According to an HP filing with the US Securities and Exchange
Commission, HP is paying Mott a basic salary of $690,000 a
year.
There are also options for 500,000 shares, and a short-term
bonus scheme worth 100% of basic salary for the remainder of fiscal
2005 and fiscal 2006.
HP has also paid Mott a $2.2m golden welcome plus a $1m
relocation payment.
On top of this Mott is also getting 285,000 shares of restricted
HP stock over five years, worth more than $7m at current market
prices.
To round the generous package off, Mott will benefit from an
additional cash bonus scheme worth up to $7m from 2005 to 2008. Of
this, $5m is guaranteed, if he sticks around.
The level of the benefits shows how much HP rated the CIO of its
biggest rival Dell, although it may dismay many of the 14,500
employees whom HP announced yesterday would be axed to cut
costs.