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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Elwood P. Dowd who wrote (96849)	4/5/2002 5:45:06 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

Fiorina set for pay hike on completion of Compaq deal Reuters, 04.05.02, 5:58 AM ET NEW YORK, April 5 (Reuters) - Hewlett-Packard Co. (nyse: HWP - news - people) has promised certain executives, including Chief Executive Carly Fiorina, a pay rise after the completion of its merger with rival Compaq Computer Corp. (nyse: HWP - news - people), according to a regulatory filing on Thursday by the computer and printer maker. Palo Alto, California-based HP said in a proxy filing that it expects the new job contracts following the $19 billion merger would include increases to the salaries of some executives to reflect their expanded responsibilities within the combined company. They will also have the potential for a bonus equal to, or bigger than, their base salaries, the filing said. Currently, Fiorina receives a base salary of $1 million a year and is eligible for a performance-related bonus of about $1.25 million a year. However, Fiorina returned her bonus of $625,000 for the second half of fiscal 2000 after the company fell short of achieving its profit goals. She didn't receive a bonus in fiscal 2001 either, according to the filing. In late February, merger opponent Walter Hewlett said HP had discussed a lavish pay package worth $70 million over two years for Fiorina after the Compaq acquisition. That package and a $48 million one proposed for Compaq CEO Michael Capellas -- who would be the No. 2 executive in the merged firm -- was criticised by compensation experts as excessive. At the time, HP did not deny the content of the proposed pay packages but said the talks had been aborted. The new employment contracts following the completion of the deal are also expected to grant stock options, linked to continued service with HP and achieving certain goals, the filing said. (Deepa Babington, New York Newsroom, 646-223-6129)) Copyright 2002, Reuters News Service