Hewlett-Packard (HPQ)

Perquisites

        Consistent with the practices of many of its peer companies, HP provides a moderate number of perquisites to its senior executives including the NEOs for the reasons described below.

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        HP's NEOs are eligible to receive reimbursement for financial counseling. This benefit is provided to a number of HP executives, in addition to the NEOs, because it facilitates executives obtaining professional advice on managing the compensation they receive. It is also common among the peer group companies.

        Due to HP's global presence, HP maintains a certain number of corporate aircraft. Personal use of these aircraft by the CEO and his direct reports (members of the Executive Council, or "EC members", which includes all of the other NEOs) is permitted, subject to availability. The CEO may use HP aircraft for personal purposes in his own discretion and, at times, is advised to use HP aircraft for personal travel for security reasons. EC members may use HP aircraft for personal purposes, if available and approved by the CEO. The CEO and EC members are taxed on the value of this usage according to IRS rules. Effective February 28, 2009, the Committee terminated a prior policy which had provided for a tax gross-up to the CEO and other executives with respect to some personal usage of corporate aircraft.

        Mr. Hurd receives personal security while traveling, and, as provided under his employment contract, at his personal residence. Following a global risk-management review undertaken by an independent consultant at the request of the Audit Committee of the Board, security systems were installed at the personal residences of some of HP's other executives, including the NEOs. These protections are provided due to the range of security issues that may be encountered by key executives of any large, multinational corporation. Since these expenditures may be viewed as having a personal benefit to the NEOs, they are reported under "Other Annual Compensation" in the Summary Compensation Table.

Perquisites

        HP provides a moderate number of perquisites to its senior executives including the NEOs, consistent with the practice of many of its peer companies.

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        HP's NEOs are eligible to receive reimbursement for financial counseling. This benefit is provided to a number of HP executives, in addition to the NEOs, because it is common among the peer companies and to facilitate their obtaining professional advice on managing the compensation they receive.

        Due to HP's global presence, HP maintains a certain number of corporate aircraft. Personal use of these aircraft by the CEO and his direct reports (members of the Executive Council, or "EC members", which includes all of the other NEOs) is permitted, subject to availability. The CEO may use company aircraft for personal purposes in his own discretion, and EC members may use company aircraft for personal purposes, if available and approved by the CEO. EC members are taxed on the value of this usage according to IRS rules. Under existing policy, the CEO receives tax reimbursement for the first 25 hours of personal usage, which usage may include guests.

        Mr. Hurd also receives personal security while traveling, and, as provided under his employment contract, at his personal residence. These protections are provided due to the range of security issues that may be encountered by the CEO of any large, multinational corporation. It is also consistent with the practice of the peer companies. Since these expenditures may be viewed as having a personal benefit to Mr. Hurd, they are reported under "Other Annual Compensation" in the Summary Compensation Table.

Perquisites

        HP's NEOs are eligible to receive reimbursement for financial counseling. This benefit is provided to a number of HP executives, in addition to the NEOs, because it is common among the peer companies and to facilitate their obtaining professional advice on managing the compensation they receive.

        Due to HP's global presence, HP maintains a certain number of corporate aircraft. Personal use of these aircraft by the CEO and his direct reports (members of the Executive Council, or "EC members") is permitted, subject to availability. The CEO may use company aircraft for personal purposes in his own discretion, and EC members may use company aircraft for personal purposes, if available and approved by the CEO. EC members are taxed on the value of this usage according to IRS rules. Under existing policy, the CEO receives tax reimbursement for the first 25 hours of personal usage, which usage may include guests.

        Mr. Hurd also receives personal security while traveling, and, as provided under his employment contract, at his personal residence. These protections are provided due to the range of security issues that may be encountered by the CEO of any large, multinational corporation. It is also consistent with the practice of the peer companies. Since these expenditures may be viewed as having a personal benefit to Mr. Hurd, they are reported under "Other Annual Compensation" in the Fiscal 2007 Summary Compensation Table.

Perquisites

        While HP seeks to offer a level of perquisites sufficient to recruit and retain key executive talent, HP believes that setting appropriate levels of base and variable pay are of greater importance to motivating key talent and increasing stockholder return than any package of non-cash perquisites.

        HP's named executive officers are eligible to receive reimbursement for an annual physical exam and for up to $18,000 in financial counseling each year. Furthermore, the CEO and his direct reports (the "Executive Council") may use company aircraft for personal purposes, if available and approved by the CEO. Executive Council members are taxed on the value of this personal usage based on the standard industry fare level; the CEO (but not the Executive Council members) receives tax reimbursement for the first 25 hours of personal usage.

        As provided under his employment agreement, Mr. Hurd is provided security at his personal residence. The incremental cost to HP of providing these benefits to Mr. Hurd is reported in the Summary Compensation Table under "Other Annual Compensation."

Perquisites

        HP provides benefits to certain executive officers in the form of security services, limited personal aircraft usage and financial counseling. For the named executive officers, the amounts of such benefits are described in footnote 4 to the Summary Compensation Table on page 38.