Tech CEOs with biggest perks

[dwarakesh]

The past few months saw global economic recession wiping out jobs and even companies. Salary cuts, salary freeze and pink slips seem to have become a norm across a number of sectors worldwide. Tech sector has not been immune to it either. Almost all IT companies across the world downsized their employee count and froze pay hikes.

However, it continued to be a party for top men at most tech companies who attracted very lucrative perks. From company jets to personal security to club memberships, CEOs at world's top technology firms raked in high perks even at the time when their companies sounded slowdown alert alarms.

CIO magazine recently came out with a list of 'CEOs Still Getting Big Perks Despite Pay Backlash.' It includes some famous names, and some not so familiar in this part of the globe. But one thing binds them all: high perks in recessionary times. Here's a look at how much perks these top execs got.

[dwarakesh]

Larry Ellison, Oracle

Co-founder and CEO of the leading software company, Oracle Corporation, Larry Ellison is the biggest receiver of perks on the list.

According to the report, to secure CEO Larry Ellison's residence the company incurred costs and expenses of $1.4 million in 2008. Oracle paid $1.7 million in 2007, $1.8 million in 2006 and $1.4 million in 2005 for Ellison's residential security.

However, the company only paid the annual cost of security personnel. Ellison himself funded the initial procurement, installation and maintenance of the equipment for this system and the replacement of any new equipment.

Ellison has also been rated the second richest techie in the Forbes' recent list of billionaires. According to the list, Ellison has a net worth of $22.5 billion. His shares are still worth $300 million. In the past four years, Oracle has racked up 49 acquisitions, including BEA Systems (bought for $8.5 billion in 2008) and Sun Micro more recently. The company also invested $125 million in Web software outfit Netsuite.

A licensed pilot, Ellison is said to own several unusual aircrafts. Known for his flamboyant lifestyle, Ellison has got a leisure boat built for himself. This Chicago native studied physics at the University of Chicago, but didn't complete his graduation.

[dwarakesh]

Michael Dell, Dell

The CEO of the world's second-largest PC maker, Michael Dell holds the second spot on the list of CEOs who got big perks despite pay backlash.

According to the CIO report, for fiscal 2009 the company funded Michael Dell's personal and residential security totaling $1.2 million. The company paid $1 million in 2008 and $1.1 million in 2007 for the same.

However, amid deepening global crisis, the company in 2009 didn't pay other perquisites, including financial counseling and tax preparation services and personal and business technical support. Michael Dell had figured at the 25th spot on the Forbes' Billionaires list with a net worth of $12.3 billion. His total compensation declined by roughly $200,000 last year as the PC maker struggled with economic challenges.

Dell received a total compensation of $2.13 million in fiscal 2009, ended January 30, 2009 according to a regulatory filing. His salary was $931,731 last year as compared to $950,000 a year earlier. Dell received no bonus in fiscal 2009, as in the previous two years. He received about $17,000 of equity option awards, and $1.8 million of "other" compensation, primarily for security.

[dwarakesh]

Edward Mueller, Qwest

Edward A Mueller, chairman and chief executive officer of Qwest Communications International Inc, is the third biggest recipient of highest perks in the year 2008.

According to the report, Mueller got $493,781 for personal use of corporate aircraft and relocation benefits of $48,279. He also received a flexible benefit payment of $75,000, which Qwest said "is a cash payment made at the beginning of each year in lieu of the various perquisites commonly paid to executives at other companies.

A news report states that Mueller, who replaced Dick Notebaert in the summer of 2007, received $11.4 million in salary, bonus, options and restricted stock compensation for 2008. The amount totalled $6 million, though less than his 2007 package. Qwest in the past few months has laid off nearly 1,700 jobs.

[dwarakesh]

Eric Schmidt, Google

At No 4 is Google CEO Eric Schmidt. In the year 2008, Schmidt got $402,562 for personal security (a drop from the $474,662 paid for personal security in 2007 and $532,755 paid in 2006) and $106,201 for personal use of aircraft chartered for Google business.

He too figures on the Forbes list of Billionaires with a net worth of $4.4 billion. Schmidt, who became Google CEO in 2001, did his electrical engineering degree from Princeton and PhD from UC, Berkeley. Fifty-three-year-old Schmidt began his career with Bell Labs, then Xerox PARC, developed Java technology at Sun Microsystems in 1980s, and rose to be the chief technology officer.

[dwarakesh]

Sam Palmisano, IBM

Chairman of the Board and Chief Executive Officer IBM Corporation, Sam Palmisano is at No 5 on the list of CEOs who bagged highest perks amid slowdown.

In 2008, Sam Palmisano received personal travel on company aircraft valued at $493,881, along with financial planning, use of company autos, personal security, and family attendance at company-related events. The company did not disclose the value of these perks.

According to documents filed with the US Securities and Exchange Commission, Sam Palmisano got a compensation package valued at roughly $20.96 million in 2008. His compensation includes a $1.8 million salary; $5.5 million performance-based bonus; stock options and awards worth an estimated $12.22 million at the time they were granted; and $1.44 million in perks and other compensation (including $493,881 for personal use of a company aircraft).

His 2008 compensation package at $20.96 million is slightly up from 2007 pay package at $20.91 million.

[dwarakesh]

Mark Hurd, HP

The world's largest personal computer maker, Hewlett-Packard CEO and President, Mark Hurd got security services and systems valued at $255,872; personal aircraft usage totalling $135,734; a $71,482 mortgage subsidy attributed to relocation expenses; and $18,000 for financial counselling.

Last year, Mark Hurd got $25.4 million in cash, including a $1.45 million salary and $23.9 million in bonus money, according to compensation figures in the company's proxy statement.

In February this year after reporting a 13 per cent drop in first-quarter profit, HP reduced Hurd's base salary by 20 per cent, executives' pay by 10 per cent to 15 per cent, and most employees' salaries by 5 per cent

[dwarakesh]

Sanjay Jha, Motorola

Sanjay Jha, co-CEO of Motorola Inc and CEO of Motorola's Mobile Devices business is the seventh biggest recipient of biggest perks in the year battered by slowdown.

Jha's perks totalled $392,220, which included $336,106 for personal use of company aircraft, relocation benefits, and personal use of a car and driver.

Sanjay Jha received $104.5 million as total compensation last year. Jha joined Motorola in August last year from Qualcomm to boost Motorola's struggling mobile phone business.

[dwarakesh]

Greg Brown, Motorola

Forty-eight year old co-CEO of Motorola Inc and CEO of Motorola's Broadband Mobility Solutions business, Greg Brown, received perks totalling $371,902. The amount included $222,200 for personal use of company aircraft, $102,202 for personal use of a car and driver, $40,000 for security system installation and monitoring, and costs for financial planning.

Greg Brown's 2008 pay package totalled $24.2 million. Motorola had announced a salary freeze throughout 2009. John Brown and Sanjay Jha have voluntarily taken a 25 per cent cut to their 2009 salaries while Motorola said Brown will not accept a cash bonus for 2008.

[dwarakesh]

Ivan Seidenberg, Verizon

At No 9 is chairman and CEO of Verizon, Ivan Seidenberg. In the year 2008, his perks included $143,489 for personal use of company aircraft, $15,462 for personal use of company vehicle and $10,000 for financial planning services. Seidenberg also got $150,057 as executive life insurance policy that provides a $10 million death benefit.

According to documents filed with the Securities and Exchange Commission, Ivan Seidenberg took home roughly $20.2 million in compensation including pay, vested stock and exercised option awards in 2008.

His compensation includes a $2.1 million salary, $3.7 million bonus, $13.1 million in stock and option awards, $946,754 in perks and $322,862 in deferred compensation earnings.

[dwarakesh]

Randall Stephenson, AT&T

At No 10 on the list is 48-year-old Randall L Stephenson, CEO and President of AT&T.

The report says, Stephenson got $300,136 in personal benefits in 2008, including financial counseling valued at $14,000; auto benefits totalling $26,834; personal use of company aircraft valued at $83,022; supplemental health insurance premiums worth $9,288; club memberships worth $19,565; relocation costs of $141,618 in connection with AT&T's Dallas headquarters move; communications costs of $1,540; and home security valued at $4,269.

His 2008 annual compensation amounted to $15,020,059, including base salary $1,420,833, stock gains $11,999,989, options granted $1,222,989 and others $376,248.

source: Indiatimes