Hurd's smoke and mirrors slammed
WHEN HP'S CEO Mark Hurd announced that he would be taking a pay cut of 20 per cent as part of the restructuring effort, it was widely seen as a good PR move.
After all, employees are more likely to suffer a pay cut of their own if they feel their boss is suffering with them.
However, as the dust settled after the announcement a few hacks have got out their slide rules and worked out that when it comes to suffering Hurd really isn't.
Last year he got a $5.3 million bonus, $12.9 3million in stock, $3.4 3million in option awards, $18 3million in incentives, $738k in other compensation.
While he will lose about $290,000 with the 20 per cent cut in his salary he will lose about 0.5 per cent of his pay cheque.
In short, it is like Apple CEO agreeing to cut his salary and then you discover that he is only paid $1 a year and the rest is in perks and shares.
Another bogger Damian Saunders pointed out that HP made $1.9 billion profit in 12 weeks so why was Hurd cutting jobs?
UK Unions say that HP has told them that the pay cuts will not be forced and that it will be up to the individual. Although in the US it appears that they are enforced.
While we can see why HP is making its cuts, it will have problems in the next few quarters as the recession bites, it does not make sense to parade some daft token CEO cuts before the media as if he is setting an example. µ
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I was fully expecting an article that Richard Stallman's answer to Linux stealing all his GNU code was finally up and running. He calls his UNIX clone The HURD.
I was disappointed. Who cares about some CEO seeking PR points.
Does HP really think that their CEO is as valuable as 400 well-payed employees?
It looks like it from here!
How can they justify the 400 engineers, designers and marketing experts that they don't hire?
All that sacrifice just to bathe one man in money?
HP is a large multi-national corporation. Do we really not expect the bait and switch tactic? They all do it. We all know that the staff is what makes the company because the staff makes the products, provides the services, and is the life blood of the company. Of course management isn't going to fire anyone on the senior management team because they all want to maintain their luxury lifestyles. They don't give a damn about the company or the staff. To them, it's all about their own deep pockets and keeping them filled.
...the old company motto?
"With HP Everything Is Possible"...
Yes HP does this all over. Here in Costa Rica they are pressuring the goverment to change laws so that they can lower our pay by 10%
I loved your article. How can this guy get away with it? I started a web-site to expose Hurd, check it out at
www.fuckyoumarkhurd.com
And be sure to fill out the survey!