This past week Meg Whitman (formerly CEO of eBay) was hired to take over as CEO of Hewlett-Packard (HP). In light of the Harvard article by former P&G CEO A.G. Lafley, I thought it was interesting when it was announced her salary would be $1 with potentially $1.9 million stock options (albeit with a 1st year bonus of about $3 million).
What I didn’t know was that one dollar salary for CEOs has become sort of a common idea. In fact, some of the most popular companies in the world had CEOs embrace the idea of making their income directly related to their results: Apple’s Steve Jobs, Google’s Eric Schmidt, and Ford’s Alan Mulally offered when they were facing Chapter 11 or a federal government bailout.
While for these CEOs salary isn’t an issue, it is nice to see that some are taking the steps that Lafley describes in putting an emphasis on company results (via stocks and stock options) and less on exorbinant salaries.