HP has revealed the severance package the company is providing former CEO and chairman, Carly Fiorina.
Fiorina will get a cash payout of $21.38 million, and a sum of $50,000 for financial counselling, legal and outplacement services, according to the filing with the US Securities and Exchange Commission.
Fiorina also gets to keep her PC equipment and technical support for a three-month period, HP said in the filing. Additionally, HP will provide the former executive with administrative support for a six-month period and maintenance of her home security system for a one-year period, according to the filing.
The $21.38 million cash payout consists of a $14 million payment that represents 2.5 times Fiorina's base salary and targeted annual cash bonus as well as a $7.38 million payment that is part of an HP incentive program called the long-term performance cash program, according to the filing. In addition, Fiorina will receive an unspecified cash payment for the balance of her unused vacation time.
The $14 million is payable in six months after the agreement date, with interest at an annual rate of 2.78 per cent, HP said. The severance agreement is dated February 8. It is subject to a seven-day revocation right on the part of Fiorina. If she does not revoke it, the agreement will become effective on February 15, HP said.
With the removal of Fiorina there are now only seven female CEOs leading Fortune 500 companies.