new hummer anyone?
"At Sun Microsystems, Palo Alto, Calif., due to "economic challenges experienced during the last fiscal year, our earnings per share ... and revenues were significantly below plan," according to the company's latest proxy. "As such, the Bonus Plan was amended to reduce the target bonus to 50% of the original plan and base the target bonus solely on third and fourth fiscal quarter performance criteria."
Sun Chief Executive Scott G. McNealy received a $487,500 bonus for 2002, up from no bonus for 2001, but sharply less than his $4.8 million bonus for 2000. Originally, Mr. McNealy was eligible for a $2.5 million bonus for 2002, and even under the adjusted targets, he was still eligible for a $1.2 million bonus.
Several other Sun Microsystems executives received no bonus for 2001, but received bonuses ranging from $82,400 to $241,800 for 2002.
"The idea was to make it a little bit more attainable based on postbubble realities," says Sun spokeswoman Diane Carlini. The changes applied to bonuses for all 35,000 of the computer company's regular employees, she says. "Reducing the target bonus, just for the half a year so it only impacted the third and fourth fiscal quarter, made the range more realistic. This becomes a morale issue for all employees, I think."
so says the wsj today |
