Fiorina’s Pay Falls 38% in Fiscal 2003

Hewlett-Packard Co. said the pay of Chief Executive Carly Fiorina was reduced 38% in its 2003 fiscal year after the firm’s $18.9-billion purchase of Compaq Computer Corp., according to a proxy filed with the Securities and Exchange Commission.

The tech giant also said three directors -- former Boeing Co. CEO Philip Condit, Compaq co-founder Thomas Perkins and former Vodafone AirTouch Chairman Sam Ginn -- won’t stand for reelection. The board will be cut to nine members from 11.

During the fiscal year, HP missed its first-quarter forecast on revenue and its third-quarter forecast on profit excluding some costs. Fiorina cut 7,000 jobs and recorded $752 million for severance and other costs in fiscal 2003. That was after cutting 17,500 jobs and taking about $2.8 billion in costs for severance payments, retention bonuses and restructuring related to the acquisition of Compaq in 2002.

Fiorina’s pay, including salary, bonus and options, fell to $6.64 million, from $10.7 million in fiscal 2002, according to the proxy.

Stock options are granted in part based on the company’s share performance against peers, the proxy states. In fiscal 2003, Hewlett-Packard shares gained 41%, same as the Standard & Poor’s 500 information technology index, which includes the company as well as Microsoft Corp. and Intel Corp.

Shares of Palo Alto-based Hewlett-Packard on Friday declined 19 cents to $25.30 on the New York Stock Exchange.