Don’t spend it all in one place—
Meg Whitman, to prove a point and to steer HP in a new direction, will be voluntarily taking a salary of only one dollar per year for her efforts to turn the faltering electronics company, stationed in Palo Alto, CA, into a lean, mean productive machine.
Leo makes off like a bandit
The CEO that Whitman replaces, Leo Apotheker, will receive a $7.2 million severance package with stock options for his disastrous time at HP which lasted a scant 11 months. During his time there, the stock value of its shares plummeted almost 50 percent, not to mention the doomed decision to launch the TouchPad tablet.
Imagine what would have happened if he were there for two years.
Meg joins a select crowd
The one dollar per year CEO salary is nothing new. The most famous of them all is Steve Jobs of Apple computer whose only compensation was Apple shares. But since 2000, Apple shares have gone up in value 4,500 percent. Not bad.
Compensation through stocks
Although the small amount seems ridiculous, Meg and others who have entered the realm of the One Dollar Club are compensated with stock options—if the company does well, so does the value of their stocks. So in other words, they have a vested interest in making their companies a success.
Rebranding the brand
Image is everything, as the saying goes, and as far as HP’s image is concerned, it doesn’t ring a lot of bells for the general public.
Apple has an apple. Android has a cute little robot. Samsung has cool names for its products called Galaxy. Motorola has smartphones named Droid, and what does HP have?
Computers named Pavilion, laptops called dm1z, and printers that look like ugly plastic boxes.
Meg, are you reading this?
Source: Daily Finance
(For a free subscription to the latest news on Gadgets and Tech from Frank, click here)