Fiorina and Capellas waive millions for sake of merger

It has emerged that in addition to deciding to put a freeze on hiring new executives (http://www.silicon.com/a49177), the top brass at HP and Compaq will turn down around $22m in initial retention bonuses should the companies' merger go through.

Since the surprise deal was unveiled at the start of September, the companies' share prices have fallen and users (http://www.silicon.com/a47143) and investors (http://www.silicon.com/a48441) have expressed their concerns.

An S-4 SEC filing reveals HP and Compaq CEOs Carly Fiorina and Michael Capellas will waive $8m and $14.4m respectively to help the deal proceed, although the door would remain open to improved pay offers and bonuses in the future.

The latest moves come against a backdrop of family members of HP's founders also protesting the merger. Members from the Packard and Hewlett families (http://www.silicon.com/a48951) - although not able to make or break the transaction - have said they are unhappy with the plans.