Feeds

HP quashes executive jet perks

Arrives after company-wide wage reductions

Top three mobile application threats

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. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
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.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.