The lowdown on Mott's $15.3 million compensation package
By now, you’ve probably heard that HP poached Dell’s CIO Randy Mott in July. What you may not have heard about is the dude’s compensation package. Allow me to fill you in on the details.
According to documents HP filed with the SEC when it brought Mott on board, HP is paying Mott an annual base salary of $690,000 per year, giving him a half million stock options, 285,000 shares of restricted stock, a short-term bonus worth his entire annual salary and a $5 million long-term performance bonus that’s guaranteed even if the company tanks (if HP meets or exceeds his target, he could earn up to $10 mil, according to Reynold Lewke, a partner with recruiting firm Egon Zehnder’s CIO practice.) Not bad, eh?
Well, it gets better. Just for accepting HP’s offer, Mott scored a $2.2 million signing bonus, and HP is giving him a million dollars to move from Austin to Palo Alto.
Mott’s compensation package, valued at $15.3 million, may sound extravagant--excessive even--but in the immortal words of Tom Jones (and Egon Zehnder’s Lewke), “It’s not unusual.”
“When you look at the size of the company he’s going to, when you look at the fact that he’s going to be responsible for several thousand people, the better part of a couple billion dollars in revenues, and costs, it’s generous but it’s in line with the compensation package of other Fortune 50 CIOs who report directly to the CEO and who have similar responsibility,” says Lewke.
The other factor to keep in mind, according to Lewke, is that Mott is going to be very much a sales person for HP so he needs to be compensated for the time he’s going to spend hob-nobbing with CIOs to drum up business, in addition to overseeing the infrastructure and setting IT strategy.
Finally, says Lewke, Mott’s new compensation package reflects the accumulated value of the long-term incentive packages to which he’s been privy during his five year tenure that HP had to make up for. “HP had to do something that would compensate him for the money he was walking away from [at Dell.]” Hence the stock options, the restricted stock and the $2.2 million signing bonus. “They had to make it worth his while to come over.”
As for the million dollar moving allowance, “That’s what it takes to get somebody at that level to move to the valley,” says Lewke, who adds that a modest 1500 square foot bungalow with three bedrooms and two baths fetches $650,000 these days.
Now for the irony: within days of Mott’s appointment, HP announced a major restructuring and layoffs (much of which will affect the IT department) aimed at shearing the company of $1.9 billion in costs per year beginning in 2007. So it looks like a few IT workers are at HP are making way for Mott’s salary and bonuses. Lewke says people around the Valley were saying soon after Mott was hired at HP, “I’ll take some of that and keep my job, thank you very much.”
Previous Post: It's Official: Dell names Sheskey new CIO Next Post: Gilligan's new island: SRA International
Most Discussed Posts
Cloud computing has emerged as one of the most significant game changers to hit the technology landscape in the past 20 years. With this massive expansion of the cloud, the perception of the IT organization is shifting from a utility player to a change agent. This eBook breaks down five ways progressive organizations are using cloud-based IT Management solutions to help drive innovation and become more strategic, including: adding visibility and analytics, speeding up time-to-value, lowering costs, improving prioritization, and providing a blueprint for future cloud deployments.
Read the white paper to see how IBM helped Citigroup deliver new services and enhancements to their 200 million customers faster.
There are 3 ways to modernize legacy applications: rewrite completely, acquire packaged solutions or migrate existing code. This paper explains why it's best to migrate and how IBM® Rational® software can help.
Accommodating specific lines of business can result in a hybrid ecosystem of applications and servers. The resulting complexity of this architecture makes for an environment that is costly to maintain and difficult to change when addressing new challenges.
This whitepaper will help you to define a mobile device passcode policy. Security managers must attempt to reconcile two opposing goals. They must: 1) create a passcode policy that is strong enough to protect the device if it is lost or stolen, while: 2) not annoying users with needless length or complexity.
This whitepaper, authored by The Radicati Group, looks at the key reasons organizations should consider moving to a cloud-based archiving solution. Email archiving solutions enable organizations to store, monitor, and collect electronic data exchanged by their users to comply with internal policies and regulations.
ATERNITY will showcase a 30-minute demo on how Fortune 500 companies are leveraging its award-winning FPI Platform to deliver a user-centric approach to Proactive IT Management.
For businesses to move forward and tap into the ever-expanding universe of Internet users and network-enabled devices, it's critical to learn how to make the transition to IPv6. Learn the critical steps your organization must take to make a seamless transition-and keep your business world connected.
Learn how IT teams can protect against spear phishing tactics. Harry Sverdlove, chief technology officer of Bit9 offers a frank discussion about spear phishing - the most common technique used in today's advanced attacks.
Learn how to build a solid business case for your migration to Red Hat Enterprise Linux so you can run leaner, innovate faster, be more flexible and own the New Now.
Social media isn't about you; it's about everything around you. As you consider how your customers want to communicate with you, social media is something that can't be ignored. But what should your strategy be? Is social media "just another channel?" What kind of a plan makes sense for your contact center and for your customers? Join our experts as they share their insight and research results.
Hardware tokens were a popular method of strong authentication in past years but the cumbersome provisioning and distribution tasks, high support requirements and replacement costs have limited their growth. The additional log-in steps that hardware tokens require and the resulting user frustrations have limited adoption and make them impractical for larger scale partner and customer applications.
Sponsored Links
