Hi Kemble! Your Patrick story made me laugh! He sounds intense about Dell! Now, about Mikey's compensation, I believe Dell has good years ahead! I have faith! :)Leigh
news.cnet.com
Lackluster stock performance slashes Dell CEO's pay
By Bloomberg News
May 30, 2000, 10:00 a.m. PT
ROUND ROCK, Texas--Dell Computer chief executive Michael Dell's pay tumbled 85 percent to $16.6 million as the No. 1 direct-seller of personal computers wrestled with its worst performance in six years.
Michael Dell's total compensation for the fiscal year that ended on Jan. 28 fell from almost $109 million a year earlier. The bulk of the decline came from fewer stock options. Dell, 35, received options valued at about $14 million last year, down from more than $105 million for the previous year.
Dell's salary rose less than 1 percent, to $850,000 from $844,231 the previous year. His annual bonus, which is tied to the company's performance, fell to $1.67 million from $2.62 million.
Dell Computer's shares tumbled 21 percent during its last fiscal year, its worst performance since the year ended in January 1994, when the shares slid 54 percent. The Round Rock, Texas-based company's stock has fallen 17 percent so far this year.
The stock decline comes as Dell Computer's sales growth slowed. Executives warned investors that sales probably will rise about 30 percent in each quarter this year from the year-earlier quarters. From 1996 through 1998, when Dell was the best-performing stock on the Standard & Poor's 500 Index, sales rose 50 percent or more every quarter.
Analysts blame the slower sales growth on Dell's size, with annual sales topping $25 billion last year. In addition, the company has wrestled during the past year with parts shortages, slower demand for corporate PCs and an end-of-the-year slowdown because of customers' Year 2000 transition concerns.
Michael Dell's pay was outlined in a proxy statement filed with the U.S. Securities and Exchange Commission.
Dell Computer's estimate of the value of options is based on its own calculations, which may differ from those of other companies because there isn't a standard formula.
Also, the SEC allows companies to provide present value or estimates of executives' potential profits from options, known as realizable value, in proxy statements. As a result, compensation figures aren't comparable from one company to another or even in the same industry.
In Dell's case, the company estimates the options' value on the day the board issues them. The company's formula, though, reduces the estimated worth by 25 percent to reflect the chance that employees might leave the company before the options vest.
Because Dell, who founded the company in his college dorm room in 1984, isn't likely to leave, the actual value of his options grant is probably higher.
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