Mercury News reported (5/21/06) on Silicon Valley executive compensation. The average direct compensation received in 2005 by the 749 top executives in the Silicon Valley, California was $3,533,048. Their total compensation includes salary, bonuses, commissions, the dollar value of restricted stock awards and gains from exercising stock options and other perks.
Rambus' own, the shareholder embattled CEO Harold Hughes, did not make the top 100 list. Number 100 received $4,415,374.
Mr. Hughes may make the list in future years if Rambus share price climbs and Mr. Hughes exercises his options.
In 2005 Mr. Hughes received 250,000 restricted options with an exercise price of $21.51. The options vest ratably over 48 months and equal 7.8771% of the 2005 options granted to Rambus employees.
Assuming a 5% annual rate of stock appreciation the realizable value of the stock will be $3,381,881 on 1/10/15 when the options expire. Assuming a 10% annual return brings the value to $8,570,350.
A summary of Mr. Hughes compensation follows:
Harold Hughes' 2005 Compensation
Salary $317,708
Bonus $285,287
Restricted Stock 125,000
Options 250,000
Other Compensation $792
Hat tip to Joe of the Pinehurst Thread.
Tuesday, May 23, 2006
Subscribe to:
Post Comments (Atom)
Posts
1 comment:
With all due respect, the fact that Harold Hughes is not in the top 100 of "excessively paid" executives in Silicon Valley does NOT in itself justify his retention as Rambus CEO. On the other hand, what he said at the annual shareholder meeting are enough justifications for his immediate dismissal!
Why should incompetence, immaturity, irresponsibility and arrogance be condoned and rewarded?
I have been constantly searching my mind trying to recall what other CEO ever said what Hughes said. NONE !
If TREOWTH's own Survey (scientific or not) is any indication, Hughes is now considered by readers as a "de facto" CEO. He is even beaten by a nominee called "Others" !!!
Post a Comment