......and they deserve every penny!!!!!
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Dell Computer Founder Gets 24% Salary Hike, $105 Million In Options
NEW YORK -(Dow Jones)- Dell Computer Corp. gave its founder, Michael Dell, a 24% increase in salary and bonus in fiscal 1999 as well as options on 12.8 million shares valued at more than $105 million, according to a proxy filed with the Securities and Exchange Commission. Dell, who is the company's chairman and chief executive, received a salary of $844,231, up 7% from $788,426 a year ago, and a bonus of $2,615,000, up 31% from $2 million a year earlier. The computer giant awarded Dell eight million options with an exercise price of $16.67 and expiration date of March 5, 2008, as well as 4.8 million options to buy shares at $28.90 apiece before the expiration date of July 17, 2008. When options as well as his salary and bonus are added together, Michael Dell received a compensation package worth more than $108 million for the fiscal year ended Jan. 29, 1999. The Round Rock, Texas, computer company posted earnings of $1.05 a diluted share in fiscal 1999, up from 64 cents the previous year. The company's stock was among the top performing stocks on the Standard & Poor 500 in fiscal 1999.
Dell directors are also proposing to increase the number of authorized shares to seven billion from four billion, according to a company filing with the Securities and Exchange Commission. The board is asking shareholders to approve the increase at the company's July 16 annual meeting. The company said the share increase could be used for stock splits or to acquire other companies. It said there aren't current plans to do either.
Dell also disclosed the head of its desktop PC business was the company's second-highest paid executive last year. Carl Everett Jr., a former Intel Corp. (INTC) executive who joined Dell in Febuary 1998, received a $100,000 signing bonus and options for four million shares. While Everett's $1.2 million in salary and bonus was the fifth-highest paycheck, the $21 million value of his options placed him second after Michael Dell. According to the SEC filing, Kevin B. Rollins, vice chairman, received a 20% increase in cash compensation, to $2.1 million from $1.7 million the year earlier. Rollins also received stock-option grants valued at $6.1 million, compared with options valued at $6.5 million a year ago. Two of Michael Dell's lieutenants saw their cash compensation flatten last year. Morton L. Topfer, also vice chairman, received $2.6 million in salary and bonus, on par with the prior year. He received stock-option grants valued at $8.7 million, compared with $5.4 million in the year-earlier period. Chief Financial Officer Thomas J. Meredith's pay fell slightly to $1.3 million, compared with $1.4 million in the year-earlier period. He received stock-option grants valued at $3.9 million, compared with $2.8 million a year earlier. A Dell spokesman said the differences in salary and bonus pay reflect higher expectations placed on each executive. He noted that the base pay for both Topfer and Meredith rose, while bonus and other compensation flattened or declined. |
