[thechat] Shameful exit of former Compaq CEO

Madhu Menon webguru at vsnl.net
Tue Nov 12 22:02:01 CST 2002

Listen to this from "Good Morning Silicon Valley":


 From the "Ain't I smart by fucking you all" department:


It seems Hewlett-Packard president Michael Capellas is leaving the company
for good reason. He was paid to resign. Under the terms of his employment
agreement, Capellas is to receive a $14.4 million separation bonus
immediately upon leaving the company. He would forgo that bonus -- which is
three times his annual base salary of $1.6 million plus three times his
annual target bonus of $3.2 million -- if he stayed more than a year at HP.
It's worth noting that Capellas arranged for this separation bonus at right
about the time Hewlett-Packard and Compaq were defending themselves against
charges that HP had offered Capellas and HP CEO Carly Fiorina vast
retention bonuses if the merger of the two companies should be approved.
The two executives, of course, rejected those bonuses. And now we know why.
"He changed his employment contract to yield himself millions of dollars if
he leaves by the end of the year," Jeffrey Sonnenfeld, the associate dean
of Yale University's School of Management told The Mercury News. "It's yet
one more egregious abuse of HP corporate governance."


And where is he going? To become CEO of - hold your breath - WorldCom! Yes,
the same accounting scandal-ridden WorldCom.

$14.4 million to LEAVE? It's easy to blow money when it isn't yours, eh?
Good ol' Compaq board.



<<<   *   >>>
Madhu Menon
Internet User Experience Consultant
e-mail: webguru at vsnl.net   |   Yahoo messenger: cold_logic

Content * Interfaces * Usability * Net Strategy

More information about the thechat mailing list