| Title: | The Digital way of working | 
| Moderator: | QUARK::LIONEL ON | 
| Created: | Fri Feb 14 1986 | 
| Last Modified: | Fri Jun 06 1997 | 
| Last Successful Update: | Fri Jun 06 1997 | 
| Number of topics: | 5321 | 
| Total number of notes: | 139771 | 
    One of the top five OVERPAID executives in America. $12M with
    stock options last year. This was from Fortune Magazine.
    
    I have lot's of comments. Can't put 'em here.
| T.R | Title | User | Personal Name | Date | Lines | 
|---|---|---|---|---|---|
| 3265.1 | Where | DASPHB::PBAXTER | Fri Jul 22 1994 14:27 | 1 | |
| Which issue of Fortune Magazine can this be found ? | |||||
| 3265.2 | I'm surprised! | ODIXIE::GCOLLINS | Fri Jul 22 1994 14:48 | 1 | |
| GROSS! | |||||
| 3265.3 | I'm not... | SWAM2::GOLDMAN_MA | Blondes have more Brains! | Fri Jul 22 1994 17:47 | 5 | 
|     Well, at least something in this company ranks in the top 5 somewhere!
    
    :) :)  
    
    M.
 | |||||
| 3265.4 | Help me understand, somebody | POBOX::CORSON | Higher, and a bit more to the right | Sun Jul 24 1994 13:30 | 10 | 
|     
    	Latest issue of Fortune has the comp. stuff. What I can't figure is
    how they put RP's comp. at $10M+ based on stock options. The stock has
    only dropped 60% since he "took over" from KO and options need to be
    price set by the Board. He can't have $10 options 'cause they don't
    exist, and without that how can RP have that kind of compensation?
    	The Greyhawk is real confused here (which is a rarity). Am I
    missing something, or am I just getting senile?
    
    		the Greyhawk
 | |||||
| 3265.5 | Digital is #1 | LGP30::FLEISCHER | without vision the people perish (DTN 297-5780, MRO3-3/L16) | Sun Jul 24 1994 14:10 | 10 | 
| re Note 3265.3 by SWAM2::GOLDMAN_MA:
>     Well, at least something in this company ranks in the top 5 somewhere!
  
        According to an AP wire service article that was sent out on
        Thursday, when it comes to layoffs, the most cuts announced
        so far this year have come from Digital (GTE, Nynex, AT&T,
        and Delta Air Lines rounded out the top five).
        Bob
 | |||||
| 3265.6 | check the proxy statement | AIAG::WEISSMAN | Sun Jul 24 1994 19:20 | 9 | |
|     The board can issue options at any price they want - well below market
    price if that's what they choose to do.  Such options are usually
    reserved for officers and directors of a corporation.  The board can
    also give out stock grants as well.  
    
    The proxy statement that accompanies the annual report usually contains
    details of the compensation (including options) of key officers and
    directors of a corporation.  I'd suggest looking in there for
    specifics.  Since I'm not a stockholder I don't have a copy of it.
 | |||||
| 3265.7 | PERLE::glantz | Mike, soon-to-close Paris Research Lab, 776-2836 | Mon Jul 25 1994 06:45 | 3 | |
| While we're on the topic of compensation for senior officers, does anyone know if disclosure of severance packages for departing senior officers is required, and, if so, where it could be found? | |||||
| 3265.8 | Don't they get a "Golden Handshake?" | SUBURB::POWELLM | Nostalgia isn't what it used to be! | Mon Jul 25 1994 08:19 | 1 | 
| 3265.9 | Maybe BP got Puts?! :-) | PARVAX::SCHUSTAK | The Few, The Proud...Digital! | Mon Jul 25 1994 08:31 | 1 | 
| 3265.10 | guess i'm naive | ICS::BEAN | Attila the Hun was a LIBERAL! | Mon Jul 25 1994 10:33 | 10 | 
|     'scuze me...
    
    but, isn't his compensation "at the will" of the BOD?  and aren't they
    who they are becuz stockholders "elect" them?  and aren't you all
    stockholders?
    
    tony
    (who isn't)
    
    
 | |||||
| 3265.11 | Lies, Damned lies ans Statistics | TROOA::SOLEY | Fall down, go boom | Mon Jul 25 1994 14:52 | 10 | 
|     A good lesson in how to lie with statistics. The way the options column
    in that chart is calculated is very misleading. Say you have a CEO who
    has held various senior positions in a company, through their career
    they've been given stock options a few times, including when they got
    the job as CEO. Now take all of those options, some years old, make 
    laughable assumptions about how high the stock price could go, then assume 
    said CEO will exercise all of their options this year, calculate the gain
    they could make in the future and call this "this years compensation".
    Next year, having exercised none of the options this year fortune will
    give our CEO another imaginary 10M.
 | |||||
| 3265.12 | TOOK::DELBALSO | I (spade) my (dog face) | Mon Jul 25 1994 15:38 | 13 | |
| re: .10, tony
>    but, isn't his compensation "at the will" of the BOD?  and aren't they
>    who they are becuz stockholders "elect" them?  and aren't you all
>    stockholders?
    
And I can't name one of "us" stockholders who voted in favor of preferred
stock last year, even though we all received the BP "thankyou note" for
having voted it in. The voting strength of employees stockholders is
practically non-existant. What do we hold? Less that 10% of the outstanding
shares?
-Jack
 | |||||
| 3265.13 | Here's the figures | ANGLIN::BJAMES | I feel the need, the need for SPEED | Mon Jul 25 1994 17:55 | 50 | 
|     Here are the facts and figures as listed in the July 25, 1994 edition
    of Fortune magazine on p. 95-96
    
    CEO: Robert B. Palmer
    Compensation Rank 14/500
    Salary: $738,000.
    Bonus: $0
    Other  $9,000.
    Value of Long Term Incentives and Stock Grants: $9,473,000.
    Total: $10,220,000.
    Value of Company owned stock: $13,400,000.
    As a multiple of salary 18.1
    Long term payouts and gains on options exercised: $0.
    Value of Options in the money as of 12/31/93: $3,000.
    5-year return to shareholders:(18.3%) Rank: 200/500
    
    Other notables:
    
    ($'s in Millions)
    
    (1) Sandy I. Weill, Travelers Inc. $45,660.
    (2) George M.C. Fisher Eastman Kodak $25,392.
    (6) Louis V. Gerstner, IBM: $15,252.
    (7) John S. Reed, Citicorp: $13,125.
    (14) Robert B. Palmer, Digital $10,220.
    (16) John F. (Jack) Welch, GE: $9,805.
    (24) Charles Lazarus, Toys 'R Us: $7,887.
    (25) Eckard Pfeiffer, Compaq Computer: $7,611.
    (33) John W. Teets, Dial: $5,935.
    (35) Alex Trotman, Ford Motor Co.: $5,501.
    (45) Robert E Allen, ATT: $4,830.
    (49) Lee R. Raymond, Exxon: $4,550.
    (71) Gary L. Tooker, Motorola: $3,878.
    (76) Andrew S. Grove, Intel: $3,604.
    (83) W.J. Sanders III, Advanced Micro Devices: $3,253.
    
    
    Highest paid base salary: Dwayne O. Andreas, Archer Daniels Midland
    $2,600.
    
    Highest bonus: James E Cayne, Bears Stearns: $8,137.
    
    Highest Other (1): James R. Mellor, General Dynamics: $12,879
     
    (1) Other is such items as insurance policies, club memberships and in
    his case severance packages
    
    Highest Stock Grants: Sandy I. Weill, Travelers Inc. $41,367.
    
    
 | |||||
| 3265.14 | Lots of $40 stock options, eh? | SYORPD::DEEP | ALPHA - The Betamax of CPUs | Mon Jul 25 1994 21:05 | 5 | 
| So reading those numbers, it looks to me like BP got a whopping $3K from all of these incentive programs. Bob | |||||
| 3265.15 | CTHQ::DWESSELS | AlphaGeneration = Digital's Alpha AXP 64-bit products and servic | Tue Jul 26 1994 08:53 | 1 | |
| re: salary - when did/does his raise to $950,000. take effect? | |||||