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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Diamond Jim who wrote (5341)	12/31/1998 9:20:00 AM
From: Mark Palmberg	Read Replies (1) \| Respond to of 21876

For the fiscal year 1998 ended Sept. 30, McGinn received a hefty $13 million in cash plus a respectable dollop of stock options, the company's just-released proxy shows. And worth every damn penny of it, IMHO. GO LU! Mark

To: Diamond Jim who wrote (5341)	12/31/1998 10:27:00 AM
From: Rainy_Day_Woman	Respond to of 21876

James: i have no problem with compensating a qualified individual that increase my investment as McGinn you get what you pay for More on McGinn's bonus: Here's how McGinn earned such a substantial bonus: Some $4.4 million of it was a performance bonus because Lucent greatly exceeded the board's targets for quantitative goals, such as revenue and net income growth. The other $7.4 million in cash was described as a "special one-time bonus" in recognition of how well Lucent has done since it was spun off from AT&T in 1996. "That was for starting up Lucent as a public company," says a spokeswoman for the company. And it has been quite a startup. Lucent's stock has increased eightfold, to 112, since it started trading in April of 1996. And since McGinn took over as CEO in October of 1997, Lucent's market capitalization has increased from $58 billion to $148 billion -- the creation of an astounding $90 billion in stockholder value. "I don't think they're going to get any complaints from shareholders," says David M. Leach, managing director of Compensation Resource Group Inc., consultants for executive pay. "The performance is there to warrant [his bonus]." McGinn's cash payout comes on top of a healthy dose of stock options -- a more common way for CEOs to get big paydays. For fiscal 1998, he received options and restricted stock worth $8.6 million at the time of the grant in October of 1997. That was on top of $10 million in stock options and restricted stock he got in October of 1996. The value of that compensation has soared since the grant dates. Altogether, McGinn's unexercised stock options are worth more than $71 million.