CEO Pay: Big Bucks for Tech's Chief Executives

Salaries, bonuses, perks and stock awards added up to big pay packages for tech CEOs in 2008.

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Oracle CEO Larry Ellison's pay package grew 38% in 2008, while HP CEO Mark Hurd's climbed 31%. Motorola co-CEO Sanjay Jha was granted $103 million in stock and option awards—but like many CEOs' long-term equity incentives, they're underwater now. Read on to find out more about the salaries, bonus, stock awards and perks that tech CEOs took home in 2008. Our tallies—arranged from lowest to highest paid CEO—are based on data included in public companies' proxy statements (DEF 14A form), as filed with the U.S. Securities and Exchange Commission.

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Steve Jobs took his customary $1 salary in Apple's 2008 fiscal year, which ended Sept. 27. During the fiscal year he received no new performance-based grants of stock or option awards. (Jobs holds about 5.5 million shares of Apple's stock and has never sold a share since rejoining Apple in 1997.) The company, meanwhile, grew its revenue and profits by 35% and 38%, respectively, in fiscal '08. Revenue came in at $32.5 billion, up from $24 billion in 2007. Net income hit $4.8 billion, up from $3.5 billion in 2007.

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Steve Ballmer's pay consisted of a $640,833 salary, $700,000 bonus and $10,001 in other compensation. He did not receive any equity-based compensation in 2008—nor in fiscal '07, when his pay package was $1.3 million. Meanwhile, Microsoft grew its revenue and profits by 18% and 26%, respectively, in its 2008 fiscal year, which ended June 30. Revenue was $60.4 billion, up from $51.1 billion in the prior year. Net income rose to $17.7 billion, up from $14.1 billion.

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Michael Dell's 2008 compensation consisted of a $950,000 salary and $1.04 million in other compensation (nearly all of which was company-paid expenses related to Dell's personal and residential security). No stock or option awards were made to Dell during the company's 2008 fiscal year, which ended Feb. 1, 2008. His compensation was virtually unchanged from fiscal year 2007. The company, meanwhile, grew its revenue and profits by 6% and 14%, respectively, in fiscal '08. Revenue came in at $61.1 billion, up from $57.4 billion in 2007. Net income hit $2.9 billion, up from $2.6 billion in 2007.

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CEO John Thompson, who plans to retire in April, received 2008 compensation valued at $2.2 million. This included his $800,000 salary, $1.15 million performance-based cash bonus, and $273,641 in perks and other compensation. Thompson's cash bonus tripled from $350,000 awarded in fiscal 2007. Meanwhile, the company achieved solid revenue and profit gains in its 2008 fiscal year. Revenue came in at $5.87 billion, up 13% from $5.2 billion in 2007. Net income hit $464 million, a gain of 15% compared to $404 million in the prior year.

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Edgar Masri departed 3Com on April 29 of last year, just one month before the company's 2008 fiscal year ended on May 30. His pay package for 2008 included his $617,500 salary, $325,000 performance-based cash bonus, and $1.78 million in other compensation. It's a huge drop from 2007, when Masri's pay package was valued at $22.1 million. Meanwhile, 3Com widened its losses in fiscal '08. The company incurred a net loss of $228.8 million, compared with a net loss in 2007 of $88.6 million. Revenue came in at $1.29 billion compared to 2007 revenue of $1.27 billion, a gain of 2%.

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Matthew Szulik retired as Red Hat's CEO and president effective Jan. 1, 2008, but remains chairman. In the company's 2008 fiscal year, which ended Feb. 29, he earned a $558,332 salary; $589,363 performance-based cash bonus; $69,220 in perks and other compensation; and stock and option awards worth an estimated $4 million at the time they were granted. The company, meanwhile, grew its revenue and profits by 31% and 28%, respectively, in fiscal '08. For the full year, total revenue was $523 million, up from $400 million in the prior year. Net income jumped to $76.7 million, up from $59.9 million.

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Robert Mao took over as 3Com's CEO on April 30, just one month before the company's 2008 fiscal year ended on May 30. His pay package for that short time was valued at $6.1 million and included a $32,500 salary, $56,831 performance-based cash bonus, $33,645 in other compensation, and stock and option awards valued at $6 million dollars. He inherited a shaky financial situation: The company incurred a net loss of $228.8 million in its 2008 fiscal year. Revenue came in at $1.29 billion compared to 2007 revenue of $1.27 billion, a gain of 2%.

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Dan Warmenhoven's 2008 pay package included a $786,538 salary; $507,160 performance-based cash bonus; $1.2 million in nonqualified deferred compensation earnings; and stock and option awards valued at $3.6 million at the time they were granted. His compensation fell 23% from 2007, when Warmenhoven received a package valued at $7.9 million. Revenue for NetApp's 2008 fiscal year, ended April 25, grew to $3.3 billion, up 18% from $2.8 billion a year earlier. Net income climbed 4% to $309.7 million, up from $297.7 million in fiscal '07.

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Jim Whitehurst assumed the role of CEO on Jan. 1 of last year, just eight weeks before Red Hat's 2008 fiscal year closed on Feb. 29. During that time he earned a $116,667 salary; $137,518 performance-based cash bonus; and stock and option awards worth an estimated $5.97 million at the time they were granted. The company, meanwhile, grew its revenue and profits by 31% and 28%, respectively, in fiscal '08. For the full year, total revenue was $523 million, up from $400 million in the prior year. Net income jumped to $76.7 million, up from $59.9 million.

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Ron Hovsepian's $6.9 million compensation package included a $912,214 salary; $2 million bonus; stock and option awards valued at $3.84 million; and $137,014 in other compensation. His total compensation for the fiscal year ended Oct. 31 was down 5% from the $7.3 million he earned in 2007. While the value of Hovsepian's compensation package fell, Novell managed to grow revenue 3% during 2008 and narrow its overall losses. For the full fiscal year 2008, Novell recorded a net loss of $9 million on revenue of $957 million. In 2007, the company lost $44 million on revenue of $932 million.

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John Swainson's 2008 compensation included his $1 million salary; $2.15 million performance-based cash bonus; stock and option awards valued at $4.92 million; and $341,196 in perks and other compensation. His total package was down slightly from fiscal 2007, when Swainson received compensation valued at $8.9 million. Meanwhile, CA's revenue hit $4.28 billion, up 8% from the $3.94 billion reported in the prior fiscal year. Profit more than tripled: CA reported $500 million in net income 2008, up from $118 million in 2007. CA's 2008 fiscal year ended March 31.

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The bulk of Jonathan Schwartz's pay package was in stock and option awards valued at $9 million at the time they were awarded. He also received a $1 million salary, $1.04 million performance-based cash bonus, and $58,366 in other compensation. His package was up 44% from fiscal 2007, when he received compensation valued at $7.7 million. Sun's corporate performance didn't match Schwartz's gains, however. For its 2008 fiscal year, which ended June 30, Sun reported revenue of $13.88 billion, an increase of 0.1% over the $13.87 reported in fiscal '07. Net income fell 15% to $403 million, down from $473 million.

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A little more than half of Robert Beauchamp's 2008 pay package came in the form of stock and option awards, which were valued at $5.97 million when they were granted. His $950,000 salary, $4.33 million in performance-based cash bonuses, and $17,206 in other compensation make up the remainder. Overall, Beauchamp's 2007 package was up 45% from 2007 ($7.76 million). Also up 45% was BMC's net income, which hit $313.6 million in fiscal 2008 (up from $215.9 million in 2007). BMC's revenue came in at $1.73 billion, up 10% from $1.58 billion in 2007. BMC's 2008 fiscal year ended March 31.

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Edward Mueller's 2008 package included his $1.2 million salary; $2.25 million performance-based cash bonus; $990,502 in other compensation (including $493,781 in corporate aircraft usage); and stock and option awards valued at $6.9 million dollars. His total compensation is down 35% from 2007, when Mueller—who joined Qwest in August 2007—received a pay package valued at $17.4 million. Also down are Qwest's financial numbers: the company reported revenue of $13.5 billion in the year ended Dec. 31, down 2% from $13.8 billion reported in 2007. Net income plunged 77% to $681 million in 2008 from $2.9 billion reported in the year earlier.

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Joe Tucci's total 2008 compensation included his $1 million salary, $1.4 million performance-based cash bonus, and $239,039 in other compensation. He also received stock and option awards valued at $9 million at the time they were granted. The value of his compensation package more than doubled from 2007. Meanwhile, for the year ended Dec. 31, EMC grew its revenue but saw its net income fall. EMC's 2008 revenue hit $14.9 billion, an increase of 12% over the $13.2 billion reported in 2007. Net income for 2008 came in at $1.35 billion, a drop of 19%.

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John Chambers' 2008 pay package included a $375,000 salary, $3 million performance-based cash bonus, and $9,087 in other compensation—but the bulk of it came from stock and option awards worth an estimated $8.9 million when they were awarded. Chambers' package fell roughly 4% from fiscal '07, when he received compensation valued at $12.8 million. The company, meanwhile, saw bigger gains in its 2008 fiscal year, which ended July 26. Cisco reported revenue of $39.5 billion, a gain of 13% over the $34.9 billion recorded a year earlier. Net income hit $8.1 billion, up 10% from $7.3 billion in fiscal '07.

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Randall Stephenson's 2008 package included a $1.4 million salary and $376,248 in other compensation. The bulk of his pay package came in the form of stock and option awards valued at $13.2 million at the time they were granted. Overall, the value of Stephenson's 2008 package fell 17% from 2007, when he received compensation worth $18 million. Meanwhile, AT&T's revenue for 2008 totaled $124 billion (up 4% from $119 billion in 2007), and net income was $12.9 billion (up 8% from $12 billion).

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Verizon posted solid increases in income (up 16% to $6.4 billion) and revenue (up 4.2% to $97.4 billion) for its fiscal year ended Dec. 31, but Ivan Seidenberg's total compensation in 2008 declined slightly compared to his 2007 package, which amounted to nearly $20.4 million. Seidenberg's '08 compensation included a $2.1 million salary, $3.7 million bonus, $13.1 million in stock and option awards, $946,754 in perks (including $143,489 for personal use of a company aircraft), and $322,862 in deferred compensation earnings.

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Sam Palmisano's nearly $21 million package included a $1.8 million salary; $5.5 million performance-based bonus; stock options and awards worth an estimated $12.22 million at the time they were granted; and $1.44 million in perks (including $493,881 for personal use of a company aircraft). Overall, Palmisano's 2008 compensation was up just slightly from 2007, when his pay package was valued at $20.91 million. But the company saw bigger gains: IBM reported revenue of $103.6 billion in 2008, up 5% from 2007's $98.8 billion. Income for the year ended Dec. 31 came in at $12.3 billion compared with $10.4 billion, a jump of 18%.

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Greg Brown's 2008 compensation package included a $1.2 million salary and $378,571 in other compensation. He also was awarded restricted stock and options valued at $22.6 million on the dates they were awarded to him. His total compensation is more than double what he earned in 2007. Meanwhile, Motorola's revenue tumbled in its 2008 fiscal year, and its losses widened enormously. For the year ended Dec. 31, revenue came in at $30.1 billion, down 18% from $36.6 billion in 2007. The company recorded a net loss of nearly $4.2 billion, compared with a net loss of $49 million in 2007.

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Mark Hurd's 2008 compensation included a $1.45 million salary, $5.34 million bonus, $18.6 million in performance-based cash bonus, and $738,392 in other compensation (including $255,872 for security services and systems and $135,734 for personal aircraft usage). Hurd (who plans to take a 20% salary cut in 2009) also collected stock and option awards valued at $7.9 million when they were granted. His total package was up 31% from 2007, when he received compensation valued at $26 million. HP, too, saw solid gains in its 2008 fiscal year (ended Oct. 31). HP's revenue hit $118.4 billion, an increase of 13% over the $104.3 billion reported a year earlier. Net income came in at $8.3 billion, up 15% from $7.3 billion in fiscal '07.

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The bulk of Larry Ellison's 2008 pay package came in the form of option awards, which were valued at $71.37 million—at the time they were granted. Ellison also received a $1 million salary, $10.78 million performance-based cash bonus, and $1.45 million in other compensation. His package was up 38% from 2007, when his pay was valued at $61.2 million. Oracle's performance was also up some. In its 2008 fiscal year, which ended May 31, Oracle reported revenue of $22.4 billion (up 25% from $18 billion in fiscal 2007), while annual net income hit $5.5 billion (up 29% from $4.3 billion).

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Sanjay Jha, who joined Motorola in August, amassed a compensation package valued at $104.4 million. He collected a $484,615 salary and $412,096 in other compensation, plus restricted stock and options valued at $103.5 million on the dates they were awarded to him. Meanwhile, Motorola's revenue tumbled in its 2008 fiscal year, and losses widened enormously. For the year ended Dec. 31, revenue came in at $30.1 billion, down 18%. The company recorded a net loss of nearly $4.2 billion, compared with a net loss of $49 million in 2007. Motorola said these were necessary to attract Dr. Jha to lead a turnaround.

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