Wireless communications equipment maker Qualcomm Inc.
boosted the paycheck of its chairman and chief executive by 12% in fiscal 1996
from the previous year, and is seeking a way to tie stock-option benefits more
closely to company performance.
According to a proxy statement filed with the Securities and Exchange
Commission, the company paid its top executive, Irwin Mark Jacobs, $723,183
in salary, bonus and other compensation in fiscal 1996 ended Sept. 29. In fiscal
1995, he earned $646,074 in salary, bonus and other compensation.
During fiscal 1996, Mr. Jacobs exercised an option to buy 80,000 shares at
$3.3 million below market price. Mr. Jacobs also received 215,000 stock
options with an exercise price of $46.31 a share. The options have a value of
$6.2 million if the share price grows 5% a year and $15.9 million if the price
goes up 10% a year.
Mr. Jacobs's bonus for fiscal 1996 was $200,000. He earned $476,477 in base
salary, a 22% increase over the previous year. Mr. Jacobs also earned $46,706
in benefits and retirement contributions for the year. Mr. Jacobs, 63, has been
with the company since 1985 and was one of its founders.
The company also said in the proxy that it wants shareholders to approve a
measure that would bar the company from lowering the exercise price of stock
options if the company's stock drops. In theory, the move could punish
executives by leaving executives with stock that has a negative value because the
purchase price is higher than the market value.
The company also is seeking to expand the role of stock options in recruiting
staff by increasing the number of shares eligible to be used for employee stock
options to 28.4 million from the current 23 million.
Qualcomm, of San Diego, had $813.8 million in revenue in fiscal 1996. It makes
digital wireless communications systems and Internet messaging products. It also
supplies digital wireless telephones in conjunction with Sony Corp.
Qualcomm's stock closed Friday at $39.875. Its 52-week high was $54.50 on
May 31, 1996. Its 52-week low was $30.375 on April 18, 1996. |
