Compaq Paid Capellas $1.6 Million Salary

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Compaq Computer's chief executive, Michael Capellas, got a raise to $1.6 million in salary in 2001, and Compaq forgave $2.1 million in loan payments he owed, the company said in its annual filing.

Capellas also received 850,000 options on Compaq stock that would have an estimated value of between $5.2 million and $13.3 million by 2011, assuming the stock rises by 5-10 percent annually over that period, and another $96,000 in additional compensation.

Compaq, which lost the title of No. 1 personal computer maker to Dell Computer and posted a $785 million net loss as sales fell 20 percent to $33.6 billion last year, did not give bonuses to senior officers, the filing said.

The company also does not plan to give raises in 2002, given Compaq's performance in 2001 and the general market downturn, it said.

However, Hewlett-Packard has said it plans to give Capellas and other senior officers raises if HP and Compaq carry out a planned merger.

Capellas' salary was up from $1.23 million in 2000, when he also got a $3.8 million bonus, $24.4 million in restricted stock and 850,000 stock options.

Compaq loaned Capellas $5 million to buy Compaq stock in 1999 with the expectation of forgiving the loan and accrued interest in three tranches. It forgave the first portion of that, $2.1 million, last year.

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