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Technology Stocks : Hewlett-Packard (HPQ) -- Ignore unavailable to you. Want to Upgrade?

To: Dave B who wrote (2143)	11/11/2002 1:50:20 PM
From: PCSS	Read Replies (2) \| Respond to of 4345

THIS puts (??) a different twist on things ?? Capellas to get payout for leaving H-P PALO ALTO, Calif. (CBS.MW) -- Michael Capellas will receive a $14.4 million separation bonus upon stepping down as Hewlett-Packard's president, the company confirmed Monday. Capellas is set to receive the bonus, which is three times his annual base salary of $1.6 million plus three times his annual target bonus of $3.2 million, immediately upon leaving the company Dec. 1. The separation bonus is outlined in the terms of Capellas' employment agreement, which was included in a company filing with the Securities and Exchange Commission in June. Carly Fiorina, Hewlett-Packard's chief executive, issued a statement saying she fully supports Capellas' decision to leave. Capellas became president in May when H-P acquired Compaq for about $18.6 billion. The Wall Street Journal on Monday reported that WorldCom's board of directors had already agreed to pick Capellas to replace current CEO John Sidgmore. "This move was expected," said Rebeca Robboy, an H-P spokeswoman. "He had been a CEO before, and you would expect him to be a CEO again. We support his position to pursue CEO positions outside the company." H-P said the position of president would not be filled and that the executives who reported to Capellas would now report directly to Fiorina. A spokeswoman said H-P has not yet decided what additional second-half performance bonuses Capellas will receive, based on his performance through H-P's fiscal year, which ended Oct.31. Under terms of his current contract, Capellas is eligible for stock option grants, cash incentives, and restricted stock. Capellas already received a one-time lump sum of $850,000 when H-P completed its merger with Compaq in May.