The former head of German enterprise software giant SAP, who was named to the top spot at HP Thursday, will pocket a salary of $1.2 million in his first year, along with a signing bonus of $4 million.
HP thinks he's worth it. "Leo is a strategic thinker with a passion for technology, wide-reaching global experience and proven operational discipline—exactly what we are looking for in a CEO," said Robert Ryan, HP's lead independent director, in a statement.
"After more than two decades in the industry, he has a strong track record of driving technological innovation, building customer relationships and developing world-class teams," said Ryan.
Ryan added that Apotheker is the right candidate to lead HP's next phase of development.
"Leo has been a leader in anticipating the transformation taking place in our industry, and we believe he is uniquely positioned to help accelerate HP's strategy. He has demonstrated success in the U.S. market and also has vast international experience—which will be a major asset as HP continues to expand globally, particularly in high-growth emerging markets," said Ryan.
"HP has the right assets and market positions, and now we have the best team to realize the company's enormous potential," Ryan said.
As CEO, Apotheker replaces Mark Hurd, who resigned from HP in August amid allegations of having an affair with a marketing contractor and falsifying expense reports in an attempt to conceal the tryst. CFO Cathie Lesjak had been acting as CEO in the interim.
"Cathie is and will continue to be an important part of HP," said Ray Lane, who was appointed non-executive chairman at HP. "We are extremely fortunate to have one of the deepest, most talented senior management teams in the industry and to have someone of Cathie's caliber lead HP during this interim period," said Lane.
Investors appeared less than impressed with the selection of Apotheker. HP shares were off 3.02%, to $40.80, in early trading Friday.
Global CIO: HP CEO Apotheker Has Deep Expertise But Checkered History;
HP Taps Ex-SAP Head Leo Apotheker As New CEO.