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Dell executives get pay boost

Michael Singer CNET News

Published: 03 Jun 2005 14:20 BST

Dell chief executive Kevin Rollins is getting a 17 percent increase in his annual salary, making him second only to founder Michael Dell in pay, the company said on Tuesday as part of a filling with the Securities and Exchange Commission.

Rollins, who took the reins at Dell in July 2004, is now making close to $3m (£1.6m) in salary and cash bonuses. Rollins will also take in 1.2 million shares as part of his package deal for 2005, which is better than the 800,000 options the top executive received in 2004.

The compensation was reported as part of Dell's annual proxy statement for its fiscal year. Its most recent fiscal year ended on 29 January.

Chairman Michael Dell found his paycheck increased by only 8 percent, but the founder of the number one PC maker still makes $3.2m per year. Dell also saw his stock option grants cut in half, to 400,000. Dell remains the company's largest stockholder with more than 200 million shares outstanding.

Rounding out the list of Dell's top five in the compensation department are senior vice-presidents Paul Bell and Rosendo "Ro" Parra, who manage overseas and domestic sales respectively, and Jim Schneider, the company's chief financial officer. Bell makes $2.6m, Schneider pulls down $1.35m, and Parra makes $1.34m.

For its latest quarter, which ended on 29 April, the company reported total revenue of $13.4bn, a 16 percent increase from the same time last year, and net earnings of 37 cents per share, up 32 percent year over year and a company record.

Dell will host its annual meeting of stockholders on 15 July in Austin, Texas.