Tech

HP CEO gets big pay hike after 2013 stock rally

Meg Whitman
Jacob Kepler | Bloomberg | Getty Images

Hewlett-Packard Chief Executive Meg Whitman gave up her symbolic $1 salary and now draws an annual base salary of $1.5 million, reflecting the 93 percent rise in the company's stock so far this year.

Whitman, HP's third CEO in four years, is steering the Silicon Valley giant through a years-long restructuring since inheriting in 2011 a company shaken by board changes, executive departures and fluctuating strategic decisions.

(Read more: Hewlett-Packard earnings beat estimates)

Investors have since credited her for bringing much-needed stability to HP, which she is trying to turn around through layoffs, cost cutting and expansion into fast-growing markets such as enterprise computing.

HP board approves pay increase for CEO Meg Whitman
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HP board approves pay increase for CEO Meg Whitman

The new salary, effective November 1, "brings Ms. Whitman's salary to a competitive level among the salaries of the chief executive officers of HP's peer companies," the company said in a Securities and Exchange filing.

While Whitman drew a salary of only $1 in 2012, her total compensation was $1.99 million, including a $1.69 million bonus and vested stock and options.

(Read more: Desktop computers are not dead: HP's Whitman)

HP's stock, however, at Tuesday's close of $27.45, remains well off its 2010 high of above $50, prior to the departure of Wall Street favorite and former CEO Mark Hurd.

From the time Whitman joined in September 2011, HP's stock has risen just 14.5 percent compared with the S&P 500 index, which is up 51 percent over the same period.