Oracle Corp., the world’s second- biggest software maker, said it will pay former Hewlett-Packard Co. Chief Executive Officer Mark Hurd $950,000 a year in salary as president, with a bonus of as much as $10 million.

Hurd’s target bonus for fiscal 2011 is $5 million, which may be higher if he exceeds performance targets, Oracle said in a regulatory filing. He also gets the option to purchase 10 million shares of the company’s stock at the market price on the date of the grant, allowing him to profit as the stock rises.
Hewlett-Packard filed a lawsuit yesterday to stop Hurd from working at Oracle. Hurd signed several non-disclosure agreements while at HP and it would be impossible for him to work as president at Oracle without disclosing HP trade secrets and confidential information, the company said in its complaint.
Hurd left HP Aug. 6 after the company said he violated standards of business conduct. As part of his severance, Hurd was due to receive a payment of $12.2 million, plus other benefits that include restricted HP shares. All told, Hurd may receive $40 million to $50 million, according to an estimate by Frank Glassner, CEO of Veritas Executive Compensation Consultants LLC in San Francisco.
Oracle rose $1.35, or 5.9 percent, to $24.27 in Nasdaq Stock Market trading Tuesday, after the announcement about Hurd joining the company. The shares had declined 1.1 percent this year before Wednesday.