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DXC’s Most Highly Compensated Executives In Fiscal 2023
Joseph F. Kovar
DXC has released the full annual compensation of its five named executive officers, showing that one executive’s total compensation for fiscal 2023 exceeded the sum total of the other four executives and that four of the five saw significant cuts over their fiscal 2022 compensation.
Like many tech companies over the past year, DXC Technology’s financial performance has suffered. The company in May reported full fiscal year revenue of $14.43 billion, down 11.3 percent over the $16.27 billion it reported for fiscal 2022. The year also saw net income turn to a net loss, with a loss of $566 million in fiscal 2023 compared to a net income of $736 million in fiscal 2022.
DXC, however, called fiscal 2023 a year in which the Ashburn, Va.-based company “delivered consistent financial performance with a focus on establishing a sustainable financial foundation,” noting that the company’s organic revenue fell only 2.7 percent while it reduced its debt levels by $565 million to $4.4 billion and had a TSR (total shareholder return) performance that far outpaced the S&P 500 and the GICS 4510 software and services industry companies.
Despite the positive spin on fiscal 2023, the year was one in which four of the company’s five named executive officers saw a significant drop in their total compensation. The fifth, Christopher Drumgoole, joined the top executive rank in 2023.
According to the Schedule 14A proxy statement DXC filed June 12 with the U.S. Securities And Exchange Commission, 92 percent of DXC’s CEO compensation is variable and at risk, while the same can be said of an average of 81 percent of the compensation of the other named executive officers.
Of the variable portion of their compensation, the majority of long-term incentive equity awards are performance-based, while 60 percent short-term cash incentives were based on adjusted EBIT (earnings before interest and taxes) and 40 percent on organic revenue growth.
In fiscal 2023, under the annual cash incentive plan, DXC’s compensation committee determined that the company’s achievements for adjusted EBIT margin percentage was about 90 percent of target, and organic revenue growth percentage was about 97 percent of target, which DXC said resulted in a calculated payout of about 60 percent of target, which caused a significant drop in total compensation for the named executive officers.
How did DXC’s five named executive officers fare in fiscal 2023 in terms of compensation? Click through the slideshow for more details.