PALO ALTO, Calif. (AP) - Computer and printer maker Hewlett-Packard Co. said
Friday the board voted to limit its ability to unilaterally resist unsolicited
takeover attempts.
The company also said it adopted a long-term executive compensation program,
confirming an existing policy on performance-based pay.
The board's amendment to HP's bylaws formalizes the company's existing
policy that, subject to a limited fiduciary exception, the board will seek
stockholder approval before it adopts or extends a stockholder rights plan, HP
said in a statement. Such stockholder rights plans are sometimes dubbed "poison
pill" provisions because they are calculated to discourage unsolicited takeover
offers.
HP is the world's largest technology company by revenue.
Under the new compensation program, equity grants will vest only upon the
satisfaction of financial performance criteria over a three-year period. The
program will be effective with the fiscal 2008 compensation review cycle. HP's
fiscal year ends in October.
The company said the amendment confirmed its policy that a significant
portion of long-term incentive compensation for senior executives should be
performance-based.
Also on Friday, HP closed its acquisition of Opsware Inc., which is bought
for $1.6 billion.
Shares rose 2 cents to $50.12 in premarket trading.
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