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Fifteen tech leaders made more than $US14 million in 2013.
Median pay among CEOs at the 100 largest U.S. companies was $13.9 million last year, an increase of 9% over the prior year, according to compensation expert Equilar. How does that compare to the tech/telco industry? We examined 62 tech CEOs’ pay packages -- including salary, bonuses, incentive awards, and perks -- and found 15 current tech leaders whose 2013 pay exceeded the median ($13.9 million) in the Equilar 100 CEO Pay Study. The 15 highest-paid tech CEOs represent a wide range of industry players, including hardware makers, software companies, service providers, and telecommunications companies.
Oracle’s chief executive is often on the top of the pay rankings, and in 2013, his supersized package was worth $78.4 million. As usual, the bulk of Larry Ellison's compensation is equity based. He received option awards valued at $76.9 million. He also received a token $1 salary and $1,126 bonus. (He declined a $1.2 million performance-based cash bonus.) On the perks front, Oracle paid a $1.5 million tab to secure Ellison's residence. Compared to a year earlier, when Ellison netted $96.2 million, the value of his 2013 pay package is down 18%.
CEO and president, Sprint
A giant grant of restricted stock and options awards -- valued at a combined $34.1 million at the time they were granted -- drove Dan Hesse’s compensation up to $49.1 million in 2013. That’s more than quadruple the value of his 2012 pay package (worth $11.1 million). His total package also included a $1.2 million salary, $13.4 million bonus, and $372,078 in perks and other compensation. Hesse’s $13.4 million bonus is the largest cash award among the 62 CEO pay packages we studied.
CEO and chairman, Comcast
Comcast chief executive Brian Roberts had the biggest salary of all 62 CEOs whose pay we studied: $2.8 million. His 2013 cash compensation also included a $9.2 million bonus. On the equity front, Roberts received stock awards valued at $4.3 million and option awards worth another $5.3 million. Rounding out his $31.4 million pay package, Roberts received $5.1 million attributed to deferred compensation earnings, $3.5 million in company contributions to his deferred compensation plan, and $192,177 for personal use of company aircraft.
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. The bulk of that is a grant of stock awards valued at $27.9 million. Ricci’s total compensation also included his $800,000 salary, $300,000 bonus, and $226,829 in perks and other compensation.
Despite a significant pay cut, Marissa Mayer still ranks among tech’s highest paid CEOs. Mayer took a 32% pay cut in her first full year as Yahoo’s top executive, landing a pay package worth $24.9 million. Her total compensation included a $1 million salary, $1.7 million bonus, equity awards valued at $22.2 million, and $73,863 in perks and other compensation. She received $36.6 million a year earlier.
CEO, president and chairman, AT&T
Randall Stephenson’s 2013 pay package was 5% bigger than his year-earlier compensation. Valued at $23.3 million, it included his $1.6 million salary, $5 million bonus, and stock awards worth $13.4 million. Stephenson also received $522,202 in perks and other compensation, and $2.7 million attributed to a change in pension value and nonqualified deferred compensation earnings.
CEO and chairman, Salesforce.com
Marc Benioff’s compensation spiked 25% in 2013, mainly due to a larger equity award. His total pay, valued at $22.1 million, included a $1 million salary, $1.3 million bonus, option awards valued at $18.9 million, and $934,829 in perks and other compensation. Among the perks Salesforce.com provided is personal and residential security for Benioff, at a cost of $654,829.
CEO and president, CSC
In his first full year at the helm of CSC, Mike Lawrie collected a $21.3 million pay package. His compensation included a $1.3 million salary, $3 million bonus, equity awards valued at $16.6 million, and $442,921 in perks and other compensation.
CEO and chairman, Cisco
John Chambers saw his compensation nearly double last year, topping $21 million. In 2012, he received $11.7 million. The biggest boost to his pay came in the form of stock awards valued at $15.2 million (compared to $7.3 million in 2012). Chambers also received a $4.7 million cash bonus, and his salary rose from $375,000 in 2012 to $1.1 million in 2013. The remainder of Chambers' 2013 pay package consists of $11,769 in perks and other compensation.
CEO and president, HP
HP CEO Meg Whitman landed a 15% pay boost to $17.6 million in 2013. Her compensation package included a $1 salary, $260,000 bonus, equity awards valued at $17.1 million, and $275,334 in perks and other compensation. Hired to revitalize HP, Whitman has drawn a $1 salary since 2011. But not anymore. For 2014, HP’s board approved a salary of $1.5 million. Whitman’s base pay was increased to make her salary “consistent with the median of our peer group,” HP said in a filing with to the U.S. Securities and Exchange Commission.
CEO and president, Broadcom
Up 6% from a year earlier, Scott McGregor’s total pay for 2013 was valued at $15.9 million. His compensation included a $977,154 salary, $1.6 million bonus, stock awards valued at $13.3 million, and $5,100 in perks and other compensation.
CEO and chairman, Verizon
CEO of Verizon since late 2011, Lowell McAdam saw a 13% increase in his pay last year, as total compensation for him climbed to $15.8 million. His package included a $1.5 million salary, $4.1 million bonus, stock awards valued at $9.4 million, and $780,874 in perks and other compensation. McAdam also received $64,886 attributed to a change in pension value and nonqualified deferred compensation earnings.
CEO and president, Adobe
A 31% raise drove Shantanu Narayen’s compensation up to $15.7 million last year. His total package included a $941,667 salary, $1.6 million bonus, stock awards valued at $13.1 million, and $19,211 in perks and other compensation.
In his first full year as CEO of VMware, Pat Gelsinger received a $14 million pay package. His total compensation included his $850,001 salary, $1.3 million bonus, equity awards valued at $11.8 million, and $75,323 in perks and other compensation.
CEO, president and chairman, IBM
Ginny Rometty gave up her annual bonus last year -- a concession that led to a 14% pay cut for IBM’s CEO. Rometty’s 2013 pay package, valued at $14 million, included a $1.5 million salary, stock awards valued at $11.7 million, and $761,808 in perks and other compensation. Rometty announced she was passing up her annual bonus at the same time the company reported its full-year results -- including a 5% decline in annual revenue to $99.8 billion. “While we made solid progress in businesses that are powering our future, in view of the company’s overall full year results, my senior team and I have recommended that we forgo our personal annual incentive payments for 2013,”