Kiwis make do with six figures and a few Australian CIOs receive million-dollar pay packages, but Hewlett-Packard's new CIO, Randy Mott, has taken CIO remuneration to new heights, scoring a package that amounts to many millions when stock, bonuses and relocation allowances are added up.
Mott, who left HP archrival Dell to join HP last month, will get a base salary of $US690,000 (NZ$1 million), a bonus of 100% of that base salary if short-term targets for the rest of this year and next year are met, an additional $US7 million in long-term performance incentives over 2005-08, a $US2.2 million signing bonus, a $US1 million relocation allowance and 285,000 shares of restricted HP stock, vesting at 20% over five years. At HP's current share price, they're worth approximately US$7 million.
Mott also gets the option to buy another 500,000 shares of common HP stock and HP says it will indemnify him against "certain claims by his former employer as a result of his employment by HP", according to a filing with the US Securities and Exchange Commission.
HP will also "will pay Mr Mott's reasonable legal fees", according to the filing.
Mott has a nice pay package, but he has his work cut out — HP recently announced plans to make 14,500 staff worldwide redundant and there has been speculation in the user and analyst communities that reducing internal IT costs will be a big part of Mott's job.
In an interview with US Computerworld, HP executive vice president Todd Bradley echoed that sentiment, saying "Randy Mott is here because he's one of the best CIOs... in the country" and "the challenges we have — not the least of which is our internal IT cost — is what he's focused on."
Mott was CIO at Dell for five years before joining HP. Before that, he was with WalMart for 22 years, including six as CIO.
Dell and WalMart are renowned for their lean operating costs and for using IT to achieve those low running costs.
HP's former CIO, Gilles Bouchard, will stay at HP as executive vice president for global operations.