Perq-y paydays
Local executive compensation includes nearly everything but the kitchen sink
Thanks to new Securities and Exchange Commission rules, publicly traded companies are required to disclose a lot more detail when it comes to perqs provided to executives.
Some, like Cognex's Robert Shillman chose to forgo a salary entirely. Others let shareholders pick up the tab for commuting expenses. Here's a run down of some of the more interesting pay packages provided to execs in Central Massachusetts during 2006. All information was culled from documents filed with the SEC.
Marita Zuraitis, president of property and casualty companies for the Worcester-based Hanover Insurance Group, received "amounts associated with personal use of company tickets to a sporting event" among her $89,044 in "other compensation." She was the only one of Hanover's five top-paid executives to receive this sporty perq.
None of the named executives at Framingham-based TJX Cos. Inc. are hurting as far as their cars go. Each of the five highest-paid execs received at least $20,448 in "automobile benefits" last year, along with a minimum of $10,848 in associated tax gross-up.
Ronald L. Sargent, chairman and CEO of Framingham-based Staples Inc., has an awful lot to gain (or lose) depending on how he leaves the company. A "for cause" termination would net Sargent a lump sum value payout of $1.8 million, retiring would give him a similar payout of $2.2 million and resigning "for good reason" would pay him a total of $7.6 million. But the packages get really big if he's terminated without cause (total of $19.1 million) or terminated after a change in control ($25.5 million). For morbidity's sake, death or disability would pay out a total of $19.3 million.
On Wall Street, greed is good. But in Natick, or, at least, at Cognex Corp. in Natick, greed is frowned upon. Cognex CEO Robert Shillman elected to forgo both his base salary of $350,000 as well as his annual bonus of $130,200 in 2006. Per his orders, the company donated the money to an unspecified charity. No doubt, it is easy to give up $480,200 in salary when offered another $460,226 in stock-based option awards. The company also picked up the tab on $8,004 in insurance premiums for Shillman. Including the donated monies, Shillman's total compensation rang in at $948,430.
BJ's Wholesale Club stores are big. So is the cost of getting to and from the more than 170 locations throughout the eastern U.S. As a result, BJ's President and CEO Herbert J. Zarkin racked up a cool $523,034 in "commuting expenses" in 2006. Lest one think Mr. Zarkin's "commute" include a slog through I-495 congestion, note that he is required, "to the extent practical," to travel by private, jet aircraft "as an expedient and efficient means to commute to work and to travel to various company locations that are dispersed over a broad geographic area... for security, efficiency and productivity purposes."
James R. Tobin, President and CEO of Boston Scientific made "only" $922,576 in base salary in 2006, due to a pro-rated raise he received in February of last year. But stock options, awards and "other compensation" earned him a whopping $8,360,566 in total compensation. Tobin earned $5,102,711 in stock awards last year, along with $1,398,747 in stock options. He also took in $311,822 in "other compensation," including $264,265 in personal use of the corporate jet and a $25,000 "executive allowance," given to cover the cost of "company cars, health care costs not otherwise covered or tax planning services, which we do not provide to our executives."
It's all in the family at Gardner-based Precision Optics. Richard E. Forkey, president, CEO and treasurer of the company, and his son, Joseph N. Forkey, executive vice president and chief scientific officer, took in a combined $315,000 in salary last year. Richard Forkey earned $195,000 to his son's $120,000. Daddy also took in $19,757 in "other compensation," for life and disability insurance premiums, and $3,100 in car expenses. Son Joseph received a $10,000 signing bonus in 2004 prior to joining the company.
Joseph M. Tucci, chairman, president and CEO of EMC Corp. in Hopkinton, made a base salary of $1 million in 2006. Tucci also received $10.1 million in stock awards, $7.6 million in option awards, and $1.4 million as part of a non-equity incentive plan. There's also $85,458 in "other" pay listed in Tucci's earnings, including $65,643 for air travel.
WBJ Web Partners
Most Recent
Most Recent
0 Comments