Feeds

HP quashes executive jet perks

Arrives after company-wide wage reductions

Secure remote control for conventional and virtual desktops

In a sign that Hewlett-Packard is running short on compensation-based expenses to eliminate - or that its executives simply abhor flying commercial first class – the PC vendor said it's now cutting private jet perks for top executives.

The world's number one PC vendor told government regulators on Monday it will no longer provide top boss Mark Hurd and other HP executives with extra pay to cover individual taxes incurred when corporate aircraft are flown for personal use.

HP said in a filing with the US Securities and Exchange Commission that under its previous policy, Hurd got compensated for any taxes associated with "the first 25 hours of personal usage (which usage could have included his spouse or other guests) during each fiscal year." The company also extended the benefit to other executives for spousal travel, "if the spousal travel was requested by HP."

The executive wing-clipping arrives several weeks after HP announced it would impose across-the-board pay cuts to staff. US laws let HP's pay cuts pass without much legal fuss state-side, but EMEA employees are required to give written permission. HP said if it couldn't get enough of its European workers to agree to having their wages reduced between 2.5 and 15 per cent depending on job status, the company would be facing tougher times ahead.

Hurd has said the wage reductions are an attempt to trim the fat without resorting to further layoffs. In February, the company reported that for its first fiscal quarter of the year, HP had $28.8bn in sales but only managed to put $1.85bn in its pockets.

It's earnings were buffered by HP's $13.9bn purchase of the IT services giant EDS in 2008. While PC sales are slumping (and expected to stay slumped throughout 2009) the services biz is surprisingly resilient to the economic climate. In fact, HP announced Monday that it inked a $1bn agreement with Aviva, Britain's largest insurance company, to update and manage two data centers in England.

But Hurd is certainly not one to shy from employee culling. The EDS acquisition absorbed the company into HP's already notably large services business – resulting in its plans to lay off 24,600 employees as part of the deal.

Almost makes you think executive jet tax support should have been higher on the list of expenses needing cuts. ®

Boost IT visibility and business value

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
'Aaaah FFS, 'amazeballs' has made it into the OXFORD DICTIONARY'
Plus: 'EE, how shocking, ANOTHER problem I face with your service'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.