Meg Whitman to Receive a Salary of $1 at HP

According to a regulatory filing last night by Hewlett-Packard, new CEO Meg Whitman will receive an annual salary of exactly $1.

The document filed with the SEC says, literally that Whitman’s compensation includes:

A base salary of $1 per year

Of course, that is not her only compensation.  She’ll have the option of purchasing up to 1.9 million shares of HP stock, but those will only have value if the stock price increases above its current level — meaning, that particular aspect of her compensation depends entirely on how well she is able to lead the company in the coming months and years.

Whitman will also get a bonus of $2.4 million in her first year, which could grow to $6 million if the company’s performance improves in that time.

So ultimately, there’s no need to feel sorry for Whitman with her $1 salary.  But it’s still a significant gesture that may indicate she is willing to put not just her reputation but also her financial reward on the line as she takes the reigns at HP.

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