Feeds

Compaq's executive perks predicated on performance

Flipping Eck, Big Q gives shares high priority

  • alert
  • submit to reddit

High performance access to file storage

Executive Sweet Compaq's recently-released proxy statement reveals that company performance and shareholder value rank high in the firm's executive compensation scheme. According to the proxy, CEO Michael Capellas last year received a salary of $850K and a bonus of $1M. He also received 200K shares of Compaq restricted stock awards worth $5M, and 1.8M stock options. The stock options, which expire throughout 2009, could be worth as much as $70M if Compaq's share value rises 10 per cent in each year. The restricted stock awards vest on Capellas' fifth anniversary as CEO, but will vest earlier if Compaq's stock climbs out of the cellar. 50K shares will vest as soon as Compaq's stock trades at $35 per share for 30 consecutive trading days; another 50K will vest if the stock trades at $40 for a month; and the final 100K will vest if the stock trades at $50 per share for at least a month. Capellas' assumption of the CEO title dramatically improved his financial fortunes. In his role as CIO, Capellas in 1998 received a salary of $400K, a $200K bonus, and 200K stock options. Ousted CEO Eckhard Pfeiffer in 1998 received a salary of $1.5M, a bonus of $3M, and 875K stock options. During his four month tenure as CEO during 1999, Pfeiffer received $1M in salary plus a $6.4M separation payment and $3.4 long-term bonus. At age 65, Eck will be eligible for a $560K annual pension. Taken in conjunction with the erstwhile CEO's 13.4M exercisable stock options, it's obvious that Eck will be able to continue in his role as the epitome of tonsorial perfection. Capellas' compensation scheme is far less generous, but it reflects a new performance-based incentive plan that the CEO has implemented for all senior executives. For example, newly-hired CFO Jesse Greene will receive a base annual salary of $550K and a first-year cash bonus that will range from $550K to $1.375M, based in part on the company's success in meeting performance targets. Even Compaq's rank-and-file employees can profit from the firm's success, albeit on a much more modest scale. Compaq last December awarded each full-time employee a one-time option of 200 shares. Compaq's first-ever across-the-board dispensation of stock options is designed to give employees an incentive to remain employed at Compaq and to redouble their efforts to improve shareholder value. Compaq will hold its stockholder meeting on March 27, 2000 in Houston, Texas. ®

Top three mobile application threats

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Record labels sue Pandora over vintage song royalties
Companies want payout on recordings made before 1972
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Number crunching suggests Yahoo! US is worth less than nothing
China and Japan holdings worth more than entire company
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.