EMC Chief's Pay Drops 23% to $9 Million
EMC chief Joe Tucci's total compensation declined 23% compared to his $11.7 million package in 2008.
Fri, March 19, 2010
Network World — EMC (EMC) CEO Joe Tucci was awarded a compensation package valued at $9 million in 2009, according to documents filed this week with the U.S. Securities and Exchange Commission.
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His total compensation declined 23% compared to 2008, when his pay package was valued at $11.7 million.
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Tucci's pay includes his $872,308 salary (down from $1 million in 2008); a $1.1 performance-based bonus (down from $1.4 million a year earlier); and $149,150 in perks and other compensation.
The bulk of his 2009 pay package came in the form of stock and option awards, which were valued at $7 million at the time they were granted (down from $9 million in 2008).
As a company, EMC saw revenue decline 6% and profit fall 15% in 2009. EMC reported net income of $1.1 billion on revenue of $14 billion in 2009. In 2008, the company reported net income of $1.3 billion on revenue of $14.9 billion.
Tucci's lower salary and bonus reflect temporary cuts imposed last year at his recommendation.
"Given the challenging global economic environment, as part of our ongoing cost reduction initiatives, we implemented a temporary company-wide pay reduction program in 2009," EMC says in its proxy statement. "As part of this program, we reduced our executive officers' base salaries by 10% in January 2009 and by an additional 5% in May 2009, and we reduced the target annual bonus by 30% for Mr. Tucci and 10% for the other Named Executive Officers. Overall, we reduced our executive officers' total target compensation in 2009 by an average of 15%."
The base salaries for named executive officers were restored to their 2008 levels for 2010, EMC says.
Tucci's total pay is calculated using data supplied in a proxy statement filed with the SEC on March 18. The following figures are taken from the summary compensation table: salary, bonus, non-equity incentive plan compensation, and all other compensation (perks). Added to those figures is the estimated value of stock options and awards granted during the year; that figure is taken from the table that summarizes grants of plan-based awards. The calculations don't include changes in the value of pension benefits.
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