DJ Lucent/CEO Salary -2: Russo Guaranteed $1.8M Bonus In '02
Dow Jones News Service ~ February 14, 2002 ~ 5:43 pm EST
WASHINGTON (Dow Jones)--Lucent Technologies Inc. (LU) will pay its new Chief Executive Patricia Russo a base salary of $1.2 million, according to documents filed Thursday with the Securities and Exchange Commission.
The firm announced on Jan. 7 that Russo would return to Lucent as its new CEO after serving eight months as president and chief operating officer at Eastman Kodak Co. (EK). Russo was one of the founding executives at Lucent and has spent 20 years in senior executive posts with Lucent and AT&T Corp. (T).
Lucent's former chief executive was paid a base salary of $1.1 million last year.
Russo is also guaranteed an annual incentive award of $1.8 million in fiscal 2002, regardless of whether the company meets performance goals. As reported, Lucent didn't award any executive bonuses in fiscal 2001 because the company's performance fell short of its objectives for the year.
Russo was also awarded several stock options as part of her employment agreement with Lucent.
Lucent granted Russo a 10-year stock option award to purchase 1,220,000 shares of stock. This award will become exercisable in three equal annual installments.
Also, Russo was granted a restricted stock unit award of 550,000 units, which will vest and become non-forfeitable in three equal annual installments.
As a hiring inducement award, Russo received a 10-year stock option award to purchase 1,515,000 shares, and a restricted stock unit award to purchase 500,000 shares.
Russo will also be eligible to receive annual stock option grants, and long- term incentive option awards.
Lucent paid its former Vice Chairman Ben Verwaayen, who recently left the company to become CEO of British Telecom, (BTY) a lump sum payment of $5.9 million on Jan. 18, according to his separation agreement filed with the SEC.
Verwaayen's pension benefits will be calculated on the basis of a final three- year average pay of $1.35 million. The pension will be payable in a lump sum on or about Jan. 13, 2003, in accordance with Verwaayen's original employment agreement.
Lucent, Murray Hill, N.J., is a telecommunications-equipment maker.
- Carrie DeLeon; Dow Jones Newswires; 202-628-7663
(END) DOW JONES NEWS 02-14-02
05:43 PM |
