8-KLeadership Changes

Hewlett Packard Enterprise Co 8-K Report, Executive Changes (Sep 20, 2018)

Filed September 20, 2018For Securities:HPEHPE-PC

Summary

Hewlett Packard Enterprise Company (HPE) filed an 8-K on September 20, 2018, primarily to disclose the compensation details for its newly appointed Executive Vice President & Chief Financial Officer, Tarek A. Robbiati, effective September 17, 2018. This appointment is a significant event for investors as it involves key leadership changes within the finance division. The disclosed compensation package is substantial and includes a base salary, a performance-based annual bonus with a guaranteed target for the initial fiscal year, a significant restricted stock unit grant vesting over five years, a future long-term equity incentive grant, and a one-time cash award. These elements are designed to attract and retain senior talent and align executive interests with shareholder value over the long term.

Key Highlights

  • 1Appointment of Tarek A. Robbiati as Executive Vice President & Chief Financial Officer (CFO) effective September 17, 2018.
  • 2Annual base salary for Mr. Robbiati set at $800,000.
  • 3Target annual bonus of 125% of base salary, with a guaranteed target for the remainder of FY2018, up to a maximum of 250% of base salary.
  • 4Initial grant of 210,337 restricted stock units (RSUs) vesting over five years from September 19, 2018.
  • 5Long-term incentive equity grant valued at $3.5 million, to be made in December 2018.
  • 6One-time cash award of $1 million, with 50% paid initially and the remainder on the first anniversary, subject to repayment provisions.
  • 7The compensation package is intended to align executive incentives with long-term company performance and shareholder value.

Frequently Asked Questions

Tarek A. Robbiati was appointed as the new Executive Vice President & Chief Financial Officer (CFO) of Hewlett Packard Enterprise Company (HPE), with the appointment effective as of September 17, 2018.

The compensation package for the new CFO includes an $800,000 annual base salary, a target annual bonus of 125% of base salary (guaranteed target for the remainder of FY2018), an initial grant of 210,337 restricted stock units vesting over five years, a $3.5 million long-term incentive equity grant in December 2018, and a $1 million one-time cash award.

The initial grant of 210,337 restricted stock units vests over a period of five years from September 19, 2018. The long-term incentive equity grant to be made in December 2018 will have equivalent terms to other executive vice president level grants.

Yes, the one-time cash award of $1 million is subject to a pro-rata repayment obligation if Mr. Robbiati resigns or is terminated for cause within the first twelve months of employment.