H-P's Shareholders Will Vote on Golden Handshakes - TheStreet

H-P's Shareholders Will Vote on Golden Handshakes

H-P's board agreed with a proposal that shareholders should vote on big severance packages.
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Bowing to shareholder wishes,

Hewlett-Packard's

(HPQ) - Get Report

board said today that it will seek their approval for big severance payments.

Last spring, shareholders voted

in favor of severance reform, angered by the

$26 million payout awarded to former Michael Capellas when he exited the company.

Under the new policy, H-P would get shareholders' OK for any payouts that would exceed 2.99 times the sum of an executive's base salary plus bonus.

Separately, the board said it would submit any poison pill to a shareowner vote, unless it decides that doing so wouldn't be in shareowner interests. Stockholders of H-P voted at the company's meeting that they should approve any poison pill.

H-P does not currently have such a plan.

H-P also said it will pay a regular cash dividend of 8 cents per share on Oct. 8. It would be H-P's fourth dividend payment in fiscal year 2003.