EMC CEO gets $9M pay package in 2009, down 23 pct
(AP) -- The pay package last year for EMC Corp. CEO Joe Tucci was 23 percent lower than in 2008, a reflection of lower equity awards and cuts to the data-storage company's executive salaries.
The company's proxy filing late Thursday with the Securities and Exchange Commission shows that EMC valued Tucci's 2009 pay package at $9.0 million, compared with $11.7 million in 2008, according to calculations by The Associated Press.
The bulk of the pay package came from restricted stock and stock options, which totaled nearly $7 million, compared with just over $9 million last year. About half of the restricted stock and options awarded to Tucci last year are performance-based and are doled out depending on how well EMC's finances fare.
EMC noted in its filing that Tucci's bonus was hurt by the fact EMC's $14 billion in revenue in 2009 fell short of the company's target by $1 billion. The company exceeded internal expectations in other parts, however, topping the earnings per share and free cash flow goals.
EMC is the world's leading maker of data-storage machines, owning nearly a quarter of the worldwide market at the end of last year for disk storage equipment that's sold separately from the computer servers they connect to, according to market research firm IDC.
The company cut costs as the recession hurt sales. EMC has shed about 2,400 jobs in a restructuring designed to cut $500 million in costs this year. The company, which is based in Hopkinton, Mass., has about 43,000 workers.
The filing showed that Tucci got:
- A salary of $872,308, which reflected two temporary cuts to EMC executives' salaries in 2009. He had a salary of $1 million in 2008.
- A performance-based cash bonus of $1.1 million, which was down from $1.4 million in 2008.
- "Other compensation" of $149,150, which consisted mostly of Tucci's personal travel on EMC-owned aircraft
The filing also showed that Tucci exercised options valued at $7.4 million and had $13.7 million worth of stock vest during the year.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, making the AP total different in most cases than the total reported by companies to the Securities and Exchange Commission.
EMC set its annual meeting of shareholders for April 29.
©2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.