HP tightens its exec pay policy

Hewlett-Packard Co. approved plans to tie executives’ pay more closely to financial performance and give shareholders more say in company actions.

Stock grants will vest only after the executives have met financial performance targets over a three-year period, the Palo Alto-based company said. The board is working on the performance standards.

The pay plan came from investor William Steiner, who said Chief Executive Mark Hurd may have been overpaid when he got about $20 million in total compensation last year. HP’s initial call to reject the plan was overruled by 53% of voting investors in March.