Ousted CEO of HP is given $11m to join rival IT firm
Oracle plans to pay newly appointed President Mark Hurd a base salary of $950,000 (€750,000) a year. The company also says the former Hewlett-Packard CEO, who was ousted by that company last month, is eligible for a fiscal 2011 bonus of as much as $10m.
Oracle released details of Hurd's pay in a filing with the Securities and Exchange Commission yesterday. Hurd's biggest part of the package will be the 10 million stock options Oracle plans to give him.
While the filing did not offer a specific date, Oracle shares closed Tuesday at $24.26, which would value 10 million shares at $242.6m. If he stays with the company, Hurd will be given options to buy another 5 million shares each year for five years.
During HP's most recent fiscal year, Hurd received a pay package, as CEO, valued at $24.2m. His base pay came to $1.3m, with bonuses totalling $15.8m and $6.6m worth of restricted stock.
Hewlett-Packard sued Hurd on Tuesday to keep him out of his new job. HP is worried that with his knowledge of the company, he could give Oracle an unfair advantage. These lawsuits often end with a court ordering an executive to avoid parts of the new businesses.
Hurd was HP's CEO for five years but resigned last month after an investigation uncovered inaccurate expense reports related to his outings with an actress and HP contractor named Jodie Fisher, who claimed her HP work dried up after she rebuffed his advances.
Oracle and HP have co-operated for years, with HP selling corporate servers and Oracle providing the software to organise the information on them.
But Oracle, based in California, moved into direct competition with HP in the hardware business when it bought Sun Microsystems for $7.4bn last year.