HPE’s Whitman Gets $35.6 Million in 2016 After Company Split
(Bloomberg) — Hewlett Packard Enterprise Co. Chief Executive Officer Meg Whitman got $35.6 million in compensation for fiscal 2016 after leading efforts to pare down her company amid growing competition from cloud-based service providers.
Whitman, 60, got stock options worth $11.7 million, some of which are tied to share price goals, for the year ended Oct. 31, according to a regulatory filing Monday. She also got restricted shares worth $19 million that will be hers if she remains on the job through 2018 and meets certain performance targets. The total value of her pay package more than doubled from the prior year, when she ran Hewlett-Packard Co. and orchestrated the split from sister company HP Inc.
The CEO also got $1.5 million in salary and a $3.08 million bonus from the Palo Alto, California-based computer maker. Companies typically grant newly hired executives significant equity awards to provide an incentive for them to stick around and align their interests with shareholders.
Whitman has been slimming down her company, which focuses on software and hardware for corporate customers, as she looks to free it from less promising assets and focus on core products for data centers. Since splitting from HP in November 2015, she’s announced deals to shed the services business and also key software units. The stock price rose 53 percent in the fiscal year ended Oct. 31.
The CEO received one-time equity grants worth $15 million tied to the split from HP Inc. Half are options tied to stock price appreciation. The company has already met the targets and said Whitman will receive the options by November 2018. The remainder are restricted shares tied to her continued employment.
About $2.63 million of the disclosed cost of her stock awards came from accounting charges tied to previous grants from Hewlett-Packard that were converted. For 2017, her equity awards will be split between restricted shares vesting over time and options that’ll vest if the company’s stock rises from 15 percent to 35 percent, and the company meets certain growth targets.
Executive Vice President Michael Nefkens received a $14.6 million pay package while Antonio Neri, who leads the company’s enterprise group, got $12.4 million. About $989,000 and $411,000, respectively, came from accounting adjustments of existing awards.