New Sun CEO rakes in rich reward
Published: 28 Apr 2006 09:25 BST
Jonathan Schwartz, named Sun Microsystems' new chief executive on Monday, has a base salary of $1m (£560,000), the server and software maker disclosed in a regulatory filing Thursday.
And that's just for starters.
Schwartz, 40, also has the possibility of a bonus of another $2m; 2 million stock options that vest at the rate of 400,000 per year over five years; 800,000 restricted shares that will be granted if performance criteria are met; and 1.5 million restricted shares that he'll get upon staying for a year.
Also on his perk list is "private jet access for business and reasonable personal use" and coverage of personal security expenses. If he loses his chief executive job, he'll be eligible to receive three times his salary, the filing said.
Schwartz, promoted from president and chief operating officer, also has new responsibilities as a new board member.
Schwartz replaced chairman Scott McNealy as the leader of a company with a reputation as a computing industry visionary but one saddled by lacklustre financial results. McNealy said he's been grooming Schwartz for years to take over as chief executive and that the company now is poised for revenue growth.
Some investors have sharply disagreed with Sun's executive pay, objecting last year that "Sun's compensation system has the potential to reward mediocre performance".
McNealy also profited from the change. He'll get a $1m salary starting on 1 July, with an option for a bonus of another $1.5m; 2.1 million stock options vesting over five years; and 350,000 restricted shares awarded if performance criteria are met.
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