Compaq chief gets almost $7 mln pay package in '99
WASHINGTON, March 10 (Reuters) - Compaq Computer Corp.
(NYSE:CPQ - news) paid its President and Chief Executive Officer Michael Capellas almost $7 million
in 1999, including a $1 million bonus as he helped build investor confidence in the company.
Capellas received received $4.97 million in restricted stock awards and $850,000 in salary last year in
addition to the bonus, according to the company's proxy statement filed with the Securities and
Exchange Commission on Friday.
He also received 1.8 million stock options with exercise prices that range from $22.69 a share to $25.13
a share and expire throughout 2009, according to the filing.
The options would be worth an estimated $27.9 million in Compaq's stock rose five percent a year and
possibly $70 million if the stock rose 10 percent a year, the proxy showed.
``Capellas has developed and implemented effective strategies and organization alignment to ensure
progress in Compaq's transition to an Internet information technology leader,' the proxy said.
Capellas, 45, replaced the former CEO Eckhard Pfeiffer, who was forced out of the company. In 1999,
Capellas received $400,000 in salary, $200,000 in bonus and 200,000 stock options.
Compaq, the world's second-largest computer maker, saw its net income during the fourth quarter of
1999 fall 56 percent, to $332 million from $758 million the same quarter a year ago, as the company
tried to rebound from plunging computer prices.
The new company chief also holds about $160,000 worth of exercisable, in-the-money options and
another $4.32 million worth of unexercisable, in-the-money options as of Dec. 31, the proxy revealed.
Compaq shares closed up 15/16 at 28-1/2 on the New York Stock Exchange.
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