Ousted HP CEO Apotheker to get over $13 million in cash and stock

Hewlett-Packard CEO Leo Apotheker, who was recently fired, would get over $13 million in cash and stock as shareholders rue his rocky tenure that saw the technology company's market value fall nearly $40 billion in just 11 months.

According to commentators, the package was not surprising considering most major companies guaranteed generous payments to ousted executives as long as their conduct was not unethical or criminal.

However, the generous parting package would not soothe Apothekar's bitterness over HP's decision to hire him in the first place.

Apotheker replaced Mark Hurd, who was ousted in August 2010 over a scandal triggered by unproven allegations of sexual harassment. His severance package included a $12.2 million cash payment and $30 million worth of stock that he got by exercising options after his resignation. The company's stock price more than doubled during his five year tenure as CEO, adding about $50 billion to the company's market value. (See: Cathie Lesjak is HP's interim CEO as Hurd bows out).

HP's shares were down 46 per cent during Apotheker's tenure, which ended 22 September, with the shares closing yesterday at $23.78.

Despite his missteps which led to his ouster, Apotheker would still take away a $2.4-million bonus later this year under HP's "pay-for-results" plan, according to a company filing yesterday with the Securities and Exchange Commission.