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Fiorina to get millions, home security
By Joris Evers

Two days after the ouster of Carly Fiorina, Hewlett-Packard Co. (HP) on Friday detailed the severance package for its former chairman and chief executive officer in a regulatory filing.

Fiorina will get a cash payout of US$21.38 million, and a sum of $50,000 for financial counseling, legal and outplacement services, according to the filing with the U.S. Securities and Exchange Commission.

Fiorina also gets to keep her PC equipment and technical support for a three-month period, HP said in the filing. Additionally, HP will provide the former executive with administrative support for a six-month period and maintenance of her home security system for a one-year period, according to the filing.

The $21.38 million cash payout consists of a $14 million payment that represents 2.5 times Fiorina's base salary and targeted annual cash bonus as well as a $7.38 million payment that is part of an HP incentive program called the long-term performance cash program, according to the filing. In addition, Fiorina will receive an unspecified cash payment for the balance of her unused vacation time.

The $14 million is payable in six months after the agreement date, with interest at an annual rate of 2.78 percent, HP said. The severance agreement is dated Feb. 8. It is subject to a seven-day revocation right on the part of Fiorina. If she does not revoke it, the agreement will become effective on Feb. 15, HP said in the filing.

Posted February 12, 2005 12:42 AM | TrackBack (1)