I’ve just posted the Employment Agreement between Hewlett-Packard and Mark Hurd. My favorite provision is paragraph 4(f), which is titled Price Protection. For regular HP employees, price protection means buying an HP LaserJet, discovering that the price dropped within 30 days of purchase, and getting the difference in price back from a credit card company or a retailer. For a CEO, price protection means HP is on the hook for any price declines in Hurd’s vested NCR stock options after his resignation from NCR is announced. Coincidentally, NCR stock dropped from 38 to under 32 yesterday when reports surfaced that Hurd was leaving NCR for HP, but who’s sweating when you have price protection. Genius!
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