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HPQ » Topics » Executive Compensation Practices

This excerpt taken from the HPQ DEF 14A filed Feb 11, 2005.

Executive Compensation Practices

        Each year, we survey the executive compensation practices of our technology and general industry peer groups, as well as our "blended peer" group,1 which combines our technology and general industry peers. Our practice is to target our Total Rewards program for executive compensation at approximately the median percentile of total rewards provided by our blended peer group. Based upon review of the compensation arrangements discussed below, blended peer group compensation levels and our assessments of individual and corporate performance, we believe that the value and design of our executive compensation program is appropriate.

1
The blended peer group used for executive compensation purposes, which benchmarks executive compensation against companies with which HP competes in the market for executive talent, differs from the peer group used in the stock performance graphs on page 48, which is determined in accordance with Securities and Exchange Commission regulations.
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