Top VMware Execs Score $42M In Total Pay Amid ‘Unprecedented’ Broadcom ‘Uncertainty,’ Board Says
‘(T)he Compensation Committee also took into consideration the (executives) leadership impact in achieving the Company’s operating plans and MBOs during a challenging period of unprecedented corporate uncertainty associated with the pendency of the Acquisition,’ VMware’s board writes in its proxy statement.
VMware’s top executives will take home a combined $42.4 million in total compensation this year as the team toiled last year against “unprecedented corporate uncertainty” brought about by the still-pending takeover by Broadcom.
“In holistically evaluating FY23 performance, the Compensation Committee also took into consideration the (named executive officers’) leadership impact in achieving the Company’s operating plans and MBOs during a challenging period of unprecedented corporate uncertainty associated with the pendency of the Acquisition,” VMware’s proxy filing from June 1 stated.
The company’s fiscal year ended in February.
Shareholders will have a chance to vote on compensation lined up for company officers on July 13, however the vote is symbolic and not binding. VMware shareholders already approved the company’s merger with Broadcom in a December vote.
As the board constructed its method for compensating CEO Raghu Raghuram, it offered him greater incentives around financial and operational performance, to the tune of a 150 percent salary bonus, an objective he met, the board said.
VMware’s goal was to see him increase sales in its subscription offerings. This was also one of the priorities mentioned by Broadcom CEO Hock Tan when he announced the takeover. VMware said it reached revenues of $13 billion last year, and did deliver more sales through subscription.
VMware’s board trumpeted the growth.
“We continued to make progress on our business model transition driven by our expanding subscription and SaaS portfolio, which resulted in FY23 subscription and SaaS annual recurring revenue growth of 30% year-over-year, totaling $4.66 billion,” the board wrote.
The company pending merger with Broadcom remains in the hands of global regulators, with the U.S. Federal Trade Commission, the UK’s Competition and Markets Authority and the European Union’s Economic Commission each involved in deep dive investigations of how the mega-deal may harm markets.
The deal has cleared governments in South Africa, Brazil, and Canada which reserves the right to apply conditions to the merger for up to a year after it closes. Reuters reported last week that the EU was expected to agree to the deal, but only with conditions in place. That report sent VMware’s stock price to a 52-week high.
If the deal does go through, Broadcom has offered VMware executives a combined $164 million should they decide to leave, as CRN previously reported.
Here are VMware’s top executive total compensation for the virtualization star’s 2023 fiscal year, as well as their expected haul under Broadcom’s “golden parachute” provisions should a merger between the two companies close. The compensation is a mix of both stock and cash.