Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

Highs and lows of CEO pay

Ann Bednarz | July 18, 2014
A roundup of the tech industry's biggest earners, over-the-top perks, and most drastic pay cuts.

5. It pays to negotiate. Sprint's Hesse landed an enormous raise last year. His total compensation was valued at $49.1 million, which is more than quadruple the value of his $11.1 million pay package in 2012. Significantly, among the perks Hesse received was $226,794 paid by Sprint for legal fees related to the negotiation of his employment contract.

6. Spectacular pay raises keep widening the pay gap. Sprint's Hesse wasn't the only tech leader to receive a generous pay hike. Avaya CEO Kevin Kennedy got a 454% pay increase last year. His $7.4 million compensation was more than five times the value of his 2012 pay, which came in at $1.3 million.

Thomas Richards, the head of CDW, saw his pay nearly double last year, climbing from $3.2 million to $6.3 million. An 80% raise boosted John Chambers' compensation above $21 million last year, compared to $11.7 million in 2012. Riverbed CEO Jerry Kennelly's 2013 compensation spiked 61% to $12.8 million, up from $8 million a year earlier.

7. Extreme pay cuts weren't uncommon. Dick Costolo's compensation took the biggest nosedive, percentage-wise. The Twitter CEO was paid $130,250 in 2013, down from $11.5 million the previous year -- a 99% plunge. Aruba CEO Dominic Orr saw his pay cut 97% to $650,547; William Brown, CEO of telecommunications equipment company Harris, took a 55% pay cut to $6.4 million; and Brian Krzanich, who was named Intel CEO in mid-2013, saw his total compensation drop by 40% to $9.6 million the year he took the reins.

Despite an $11.7 million pay cut, Yahoo CEO Marissa Mayer still managed to rank among the highest paid tech CEOs in the U.S. with a pay package valued at $24.9 million in 2013 (down 32% from $36.6 million). Likewise, Paul Ricci, CEO of speech recognition company Nuance Communications, made 21% less in 2013 than he did the prior year, yet he still landed a pay package worth $29.2 million -- enough to be included in our ranking of top-paid tech CEOs.

8. No one comes close to Larry Ellison. Like Yahoo's Mayer and Nuance's Ricci, Larry Ellison appears on two of our lists: highest paid tech CEOs and most drastic CEO pay cuts. He's the highest paid tech CEO with a 2013 package valued at $78.4 million. He also took the biggest pay cut by dollar amount -- a whopping $17.7 million loss -- among all the CEOs analyzed. (He made $96.2 million in 2012).

9. Legal and regulatory assistance pads executive pay packages. Salesforce.com paid $280,000 in filing fees to the government on behalf of CEO Benioff, whose exercise of stock options in late 2012 required him to make a filing under the Hart-Scott-Rodino Antitrust Improvement Act (HSR Act). Qualcomm paid $45,000 in HSR Act filing fees on behalf of Paul Jacobs, who stepped down as CEO at the end of 2013.

 

Previous Page  1  2  3  Next Page 

Sign up for CIO Asia eNewsletters.