HP CEO forced to resign amid harassment claims
Mark Hurd has been the CEO of Hewlett-Packard Company since Carly Fiorina left that job in 2005. He was asked to resign as a consequence of either sexual harassment charges or some other internal misbehavior.
It has been reported that Mr. Hurd will get a $12.2 million severance payment, and nearly 350,000 shares of HP stock worth about $16 million at Friday’s closing price, plus an extension of options to buy up to 775,000 HP shares. Clearly he will never have to work another day in his life. Even at 4% interest the $12.2 million will provide him with an income of $488,000 per year. At a 39% income tax rate and allowing for no deductions he will have a net $200,000 per year for living expenses.
Under current law he could also sell those $16 million in shares as needed and everything above the current price would be taxed as capital gains. That is a rate of 15%. The rest of us who earn a living by working would pay our taxes at a higher rate.
This is what the GOP wants to perpetuate. I am sure members of the GOP can justify this situation. I just do not know how they will do it.
Coast Contact 