Dell Executives' Received Pay Increase
As PC Maker Posted Robust Results
June 1, 2001
Dell Executives' Received Pay Increase
As PC Maker Posted Robust Results
By a Wall Street Journal Staff Reporter
AUSTIN, Texas -- The pay for Dell Computer Corp.'s top executives rose sharply last year as the personal-computer maker turned in strong results.
Total pay for Michael S. Dell, the company's 36-year-old founder and chief executive, soared 81% to $27 million, including cash and the value of stock-option awards, from $14.9 million a year earlier.
The company's compensation committee raised Mr. Dell's base pay 6% to $900,000 and awarded him a bonus of $1.6 million that was paid in stock options. He also received 1.25 million share-options valued at $24.5 million.
Co-President Kevin B. Rollins's total pay more than doubled to $25.8 million from $11 million a year ago.
The company become the world's largest PC maker last year as its sales for the fiscal year ended Feb. 2 jumped 26% to $31.88 billion and net income surged 31% to $2.18 billion.
Co-President James T. Vanderslice was paid $22.7 million last year. He joined the company from International Business Machines Corp. during fiscal 2000. Mr. Vanderslice's total pay last year, including a $37.5 million sign-up bonus in restricted stock, was $62.8 million.
More recently, Dell's growth has slowed sharply and its net income has dropped year over year for the first time since 1993. Wall Street now projects earnings before charges will slide 17% in the fiscal year ending February 2002. The company has announced plans to cut from 4,700 to 5,700 employees this year as a result of lower-than-expected sales.
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