Applied Materials Boosts CEO's Bonus Nearly Fivefold (Update1)
By Cesca Antonelli
Applied Materials Boosts CEO's Bonus Nearly Fivefold (Update1)
(Adds details on options package in second, fourth, fifth
paragraphs.)
Santa Clara, California, Feb. 18 (Bloomberg) -- Applied
Materials Inc. raised Chairman and Chief Executive James Morgan's
bonus nearly fivefold after shares of the biggest semiconductor-
equipment maker almost tripled last year.
Morgan received a $1.27 million bonus in fiscal year 1999, up
from $264,190 in 1998, Applied said in a U.S. Securities and
Exchange Commission filing today. He was awarded an options
package the company valued at about $19 million if the stock gains
10 percent a year for the term of the options, compared with
options valued at about $2.3 million in fiscal 1998.
Applied has benefited as chipmakers updated product lines and
boosted output amid a 15 percent rise in demand last year.
Tuesday, the company said orders rose to a record $2.36 billion in
its first quarter ended Jan. 30. Orders will reach another record
in the current period, it said, and profit will exceed analyst
forecasts.
Today's filing said Morgan's salary rose 4 percent to
$778,542. He also realized a gain of $16.1 million from previously
granted options.
President Dan Maydan's bonus rose fivefold to $1.03 million
in fiscal year 1999, and he got options valued at about
$16.3 million. Chief Financial Officer Joseph Bronson's bonus more
than quadrupled to $596,706, and he received options valued at
$12.2 million.
Santa Clara, California-based Applied shares fell 10 5/8 to
177 3/4 today. |
