Fiorina takes home $3 million bonus

Hewlett-Packard CEO Carly Fiorina got a bonus of nearly $3 million last year on top of a $1 million salary, according to a filing made Thursday with the Securities and Exchange Commission.

Fiorina earned the same million-dollar salary in 2000 and 2001, but received no bonus in 2001. She had a $1.77 million bonus in 2000. This year Fiorina stands to receive a bonus of up to $12 million, depending on whether she and the company reach certain targets.

"We met our performance goals (in 2002)," an HP representative said, noting that all employees received bonuses during that year.

However, the Palo Alto, Calif.-based company noted in the filing that it has not negotiated a new compensation deal with Fiorina as originally anticipated after the close of the Compaq Computer acquisition in May 2002.

A proposed $115 million pay package for Fiorina and then Compaq CEO Michael Capellas was the subject of heated debate between HP and dissident shareholder Walter Hewlett during the proxy battle over the merger. HP said at the time that no deal was ever struck.

In Thursday's filing, HP reiterated that no new agreement has been made. "HP determined that it would be more appropriate for the HR and Compensation Committee of the newly constituted board--following completion of the acquisition--to analyze, review and determine the appropriate structure and size of compensation packages for executives of the combined company," the company said in the filing. "To date, HP has not negotiated new employment agreements with Ms. Fiorina or other executive officers of HP."

Capellas did get a severance package worth more than $16 million when he left HP late last year.

Other HP executives also received hefty bonuses. Chief Financial Officer Bob Wayman got an $875,490 bonus on top of his $925,000 salary. PC unit boss Duane Zitzner earned a $789,584 bonus in addition to his $725,000 salary, while HP services head Ann Livermore earned a $782,285 bonus on top of her $700,000 salary.

As part of the company's "Executive Pay for Results" program, the executives also stand to receive a substantial bonus this year if HP reaches certain financial goals. Wayman could receive up to $4.16 million, Zitzner up to $3.26 million, and Livermore up to $3.15 million, according to the filing.

Also of note is that HP's annual shareholders meeting, which is typically held in the San Francisco Bay Area, is being held this year in Atlanta. "Like other companies, we want to move the meeting around from year to year to reach a broader community of HP investors," the HP representative said.