Dell Got $926,000 Salary and Stock Options Valued at $14.6 million
Dell, who founded the Round Rock, Texas-based company in 1984, chose to be given discounted options for 307,000 Dell shares, valued at $4.7 million, in lieu of a $347,000 cash bonus, on top of an annual salary of $925,962 in the fiscal year that ended Feb. 1. That compares with a bonus of $1.7 million, taken in the form of stock options, the previous fiscal year.
As part of his salary, Dell also received stock options on a million common shares, down from 1.25 million a year ago. The company estimated the value of those shares at $9.9 million, using the Black-Scholes model a common valuation formula.
During the year, Dell exercised options on 4.2 million shares valued at $81 million.
Dell Computer president and COO Kevin Rollins received a $721,154 salary and options for 5.4 million common shares, compared with a $688,462 salary and options for 1.3 million shares a year earlier. In lieu of a $243,289 bonus, Rollins took discounted options for 213,000 shares, worth an estimated $3.3 million, according the Black-Scholes model. That compares with a $1.2 million bonus in fiscal 2001.
During the year, Rollins cashed out 1.6 million shares, realizing a gain of $39 million.
The company's other top executives also saw their salaries rise and bonuses fall:
- Vice chairman James Vanderslice, $242,416 bonus; $718,269 salary
- Paul Bell, senior vice president in Europe, Middle East and Africa, $188,798 bonus; $444,231 salary
- Joseph Marengi, senior vice president of Dell's America's division, $193,539 bonus; $439,040 salary.
- Dell's profits increased 5 percent to $1.8 billion in fiscal 2002, but sales fell 2 percent to $31.2 billion.
- In trading Wednesday, shares of Dell fell 36 cents, to $26.49, in afternoon trading on the New York Stock Exchange.
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