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CIOs rake in the big bucks

Ann Bednarz | Oct. 10, 2013
Familiar companies pay CIOs bonuses, stock awards, and executive perks along with healthy salaries

It pays to be CIO — millions, in some cases. Take Filippo Passerini. He joined Procter & Gamble in 1981 as a systems analyst in Italy and rose through the techie ranks. Today Passerini is CIO and leads the company's global business services organization — a dual role that netted him $5 million last year.

Or Deb Butler, who joined Norfolk Southern's customer service department in 1978 and currently heads the railway's strategic planning and IT initiatives. Her 2012 pay package is worth $4.6 million.

Passerini and Butler are two of 25 IT chiefs whose pay packages Network World examined. The data comes from proxy statements filed with the U.S. Securities and Exchange Commission. Public companies are only obligated to report compensation for the CEO, CFO and three highest-paid executive officers, so we scoured the proxy statements of the 500 largest U.S. companies to find 25 instances where a CIO or senior IT executive ranks among a company's most highly compensated executive officers.

For CIOs who work at companies with familiar brand names, six-figure salaries are the norm, we discovered. But salaries are just one slice of the compensation pie. The largest U.S. companies are compensating their senior tech leaders with bonuses, stock awards, and executive perks, too. Here are some of the standouts.

Total pay: Highest and lowest
Just three of the 25 IT executives made less than $1 million last year: Laurie Douglas, CIO and senior vice president (SVP) at Publix Super Markets ($717,196); Michael Guggemos, CIO at tech provider Insight Enterprises ($812,445); and Cal Sihilling, CIO and executive vice president (EVP) at wholesale food distributor Nash Finch ($845,028).

The highest paid IT executive on our list is John Hinshaw, EVP of technology and operations at HP. A former CIO at Boeing Company, Hinshaw joined HP in late 2011 and took on a newly created position that spans tech and business. In 2012, he earned $8.2 million.

Salaries are just the beginning
Base salaries ranged from $278,730 on the low end (Darren Miller, former VP of IT and administration at Quanta Services) to $837,500 at the high end (Procter & Gamble's Passerini). Close behind Passerini for the highest base salaries were: FedEx CIO Rob Carter, who received a $762,960 salary; Home Depot CIO and EVP Matt Carey, who earned a $666,192 salary; and Lori Beer, who netted a $638,460 salary as EVP of specialty business and IT at healthcare provider WellPoint.

Bonuses bulk up pay packages
Cash bonuses are typically tied to corporate performance, and senior IT executives are rewarded when their companies hit internal financial targets. FedEx's Carter took home the largest cash bonus: $2 million. Suren Gupta, EVP of technology and operations at Allstate, earned a $1.2 million bonus.


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