Six weeks after the ouster of CEO and president Carly Fiorina, HP`s board of directors has named Mark Hurd as her successor. Hurd will receive a multimillion-dollar package to take on the role.
Fiorina left the company early in February after a dispute with the board over future strategy. Robert Wayman, who has been HP`s CFO since 1984, acted as interim CEO while HP sought a suitable replacement.
HP says 48-year-old Hurd served since March 2003 as president and CEO of NCR Corporation, where he spent his 25-year career in a range of general management, operations, and sales and marketing positions. He also served as president and COO of the company`s Teradata division.
Ziff Davis reports that he will get a $2 million signing bonus, a $1.4 million salary, 700 000 HP stock options and stand to earn tens of millions of dollars more as part of short- and long-term bonus programmes. The options will vest over a four-year period.
Hurd will be given an additional 400 000 stock options and 450 000 shares of restricted stock to make up for the equity compensation he gave up when leaving NCR. The stock will vest over three years. The restricted shares alone have a value of over $8 million. He will also receive a $2.75 million "relocation allowance" to move from NCR`s Dayton, Ohio, headquarters.
Track record
Patricia Dunn, HP`s non-executive chairman, says the HP board unanimously selected Hurd, based on his track record leading a complex organisation, as well as his strong executive and personal qualities.
"Our search for a new leader to return HP to sustained success has been focused and thorough," says Dunn.
"A screening team of board members, consisting of myself, Jay Keyworth and Tom Perkins, established a broad field of candidates and interviewed many individuals. We then recommended the strongest contenders to the board as finalists. Each was interviewed by the entire board, and Mark was our top choice.
"Mark came to our attention because of his strong execution skills, his proven ability to lead top performing teams and his track record in driving shareholder value. He demonstrated these skills by turning around NCR, which, while smaller than HP, is a complex organisation with multiple business segments.
"As we got to know Mark, we were impressed by his emphasis on developing internal talent while reaching outside for new skills, his understanding of the role of culture in a company`s success and his personal integrity. Additionally, his straightforward style has won the respect of employees, customers and investors," says Dunn.
Hurd will take up his new duties on 1 April and join HP`s board.
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