The 25 Most Highly Compensated Solution Provider CEOs In 2014
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The 25 highest-paid CEOs from publicly traded companies in the top 100 of CRN's Solution Provider 500 rankings raked in nearly $118 million of compensation last year, but only 16 percent -- or $18.4 million -- of that came in the form of salary.
More than 45 percent, or $53.3 million, of the CEOs' total compensation came from stock awards, while another 13 percent, or $14.9 million, came from option awards. Bonuses made up an additional 21 percent, or $24.8 million, of the compensation package.
Publicly traded companies based in the United States are required to disclose the compensation of all named executive officers to the Securities and Exchange Commission (SEC) prior to their annual shareholder meeting.
25. Richard Leeds, Systemax: $876,000
Salary: $701,000
Bonus: $150,000
Other Compensation: $25,000
The fiscal year for Systemax, No. 19 on the CRN SP500, ended Dec. 31. The company's full-year revenue increased 2.7 percent to $3.44 billion, while net loss improved from $43.8 million in 2013 to $37.5 million in 2014.
Systemax's compensation committee awarded Leeds a bonus of $801,000, but Leeds requested that his bonus be lowered by $651,000. The company announced in March that it plans to close 31 of its 34 retail stores as part of a $50 million to $55 million restructuring, which will affect 1,500 of Systemax's 4,000 North American employees.
Leeds' other compensation consisted entirely of auto-related expenses.
24. Chad Carlson, StarTek: $944,000
Salary: $438,000
Bonus: $329,000
Option Award: $165,000
Other Compensation: $11,000
The fiscal year for StarTek, No. 85 on the CRN SP500, ended Dec. 31. The company's full-year revenue increased 8 percent to $250.1 million, while net loss improved from $6.41 million in 2013 to $5.46 million in 2014.
Other compensation for Carlson included $9,000 in contributions to his 401(k) plan by StarTek, $1,500 in health insurance premiums and $500 in life and disability insurance policy premiums.
23. Kenneth Asbury, CACI: $1.2M
Salary: $675,000
Bonus: $462,000
Other Compensation: $65,000
The fiscal year for CACI, No. 16 on the CRN SP500, ended June 30. The company's full-year revenue declined 3.2 percent to $3.56 billion as a result of a reduction in Afghanistan-related material purchases and subcontract labor, while net income fell 10.8 percent to $135.3 million.
Other compensation for Asbury included $53,000 in deferred compensation plan contributions, $8,000 for matching 401(k) contributions, $3,500 in long-term care insurance premiums and $500 for spouse travel.
22. Paul Lidsky, Datalink: $1.5M
Stock Award: $585,000
Salary: $485,000
Bonus: $412,000
Other Compensation: $18,000
The fiscal year for Datalink, No. 47 on the CRN SP500, ended Dec. 31. The company's full-year revenue increased by 6.1 percent to a record $630.2 million, while net earnings climbed by 10.3 percent to $11.1 million.
Lidsky's stock award was granted on Dec. 23, 2013, and is, therefore, not included in the official calculations, though Datalink considers it part of his compensation package for 2014. Other compensation includes a $6,000 car allowance and $12,000 for a company-sponsored awards trip for Lidsky and his spouse, as well as associated taxes for the travel expenses.
21. Frank Khulusi, PCM: $1.6M
Salary: $811,000
Stock Award: $362,000
Option Award: $314,000
Bonus: $108,000
Other Compensation: $7,000
The fiscal year for PCM, No. 27 on the CRN SP500, ended Dec. 31, with full-year revenue declining 0.3 percent to $1.36 billion, and net income sinking 32.8 percent to $5.47 million.
Khulusi also gave up his role as PCM's president, with Jay Miley coming over from Ingram Micro and assuming that title Dec. 1. In connection with Miley's hiring, Khulusi's base salary was reduced at his request in December from $833,000 to $583,000 to partially offset the cost of adding the separate president position.
Other compensation for Khulusi includes a company-sponsored awards trip and matching 401(k) contributions from PCM.
20. Phillip Norton, ePlus: $1.77M
Stock Award: $850,000
Salary: $628,000
Bonus: $280,000
Other Compensation: $10,000
The fiscal year for ePlus, No. 36 on the CRN SP500, ended March 31, 2014. The company's full-year revenues rose 7.6 percent to $1.1 billion, while net earnings rose 1.3 percent to $35.3 million.
Other compensation for Norton included $6,000 in travel and entertainment costs for his spouse to attend a sales meeting for ePlus executives, $3,000 of matching 401(k) contributions from ePlus and $1,000 in reimbursement for an executive physical.
19. Maurice Tose, TeleCommunication Systems: $2.02M
Bonus: $833,000
Salary: $641,000
Stock Award: $497,000
Option Award: $31,000
Other Compensation: $24,000
The fiscal year for TeleCommunication Systems, No. 67 on the CRN SP500, ended Dec. 31. The company's full-year revenue was down 0.7 percent to $359.9 million, while net loss improved from $58.6 million in 2013 to $1.82 million in 2014.
Other compensation for Tose includes $17,000 in health and life insurance premiums paid by TeleCommunication Systems, $5,000 in loss-term disability premiums and associated taxes and $1,000 in matching contributions to Tose's 401(k) plan.
18. Michael McAndrew, Black Box Network Services: $2.26M
Stock Award: $1.08M
Salary: $550,000
Option Award: $463,000
Bonus: $128,000
Other Compensation: $28,000
Deferred Compensation: $6,000
This fiscal year for Black Box Network Services, No. 35 on the CRN SP500, ended March 31, 2014. The company's full-year revenue declined 3 percent to $971.7 million, while Black Box endured a net loss of $115.9 million after a net income of $28.8 million in 2013.
Other compensation for McAndrew includes $26,000 in company contributions to his multiple employer pension plan through the National Telecommunications Cooperative Association (NTCA), as well as life-insurance premium payments.
17. Arkadry Dobkin, EPAM Systems: $2.35M
Option Award: $1.23M
Stock Award: $513,000
Salary: $350,000
Bonus: $250,000
The fiscal year for EPAM Systems, No. 50 on the CRN SP500, ended Dec. 31. The company's full-year revenue climbed 31.5 percent to a record $730 million, while net income climbed 12.3 percent to $69.6 million.
The compensation committee approved a base salary of $400,000 for Dobkin, but he declined the full increase from his 2013 salary of $300,000 and accepted the $350,000 salary instead.
EPAM said it awarded Dobkin variable compensation based on his expansion of the company's geographic footprint through organic growth and acquisitions, as well as his preservation of excellence in customer relationships, and product and service delivery.
16. Nitin Rakesh, Syntel: $2.39M
Stock Award: $1.66M
Bonus: $361,000
Salary: $311,000
Other Compensation: $52,000
Deferred Compensation: $5,000
This fiscal year for Syntel, No. 40 on the CRN SP500, ended Dec. 31 with the company's full-year revenue increasing 11 percent to $911.4 million, and net income climbing 13.7 percent to $249.7 million. Rakesh took over from Prashant Ranade as president and CEO on April 21, 2014.
Other compensation for Rakesh includes $38,000 for reimbursement of relocation expenses, and $13,000 for the cost of providing a car and driver.
15. Paul Hermelin, Capgemini: $2.78M
Salary: $1.54M
Bonus: $624,000
Other Compensation: $616,000
This fiscal year for Capgemini, No. 5 on the CRN SP500, ended Dec. 31. The company's full-year revenue increased 4.8 percent to $11.83 billion, while net profit soared 31 percent to $649 million.
Variable compensation for Hermelin included both financial objectives around revenue, operating income, pre-tax net profits and free cash flow, as well as individual objectives around governance, strengthening group leadership and talent, and key indicators driving profitable growth.
14. John Marr, Tyler Technologies: $2.85M
Option Award: $1.64M
Bonus: $708,000
Salary: $488,000
Other Compensation: $10,000
The fiscal year for Tyler Technologies, No. 63 on the CRN SP500, ended Dec. 31. The company's full-year revenue climbed 18.4 percent to $493.1 million, while net income soared by 50.7 percent to $58.9 million.
Marr's other compensations included personal use of a company automobile, tickets to sporting events, and 401(k) contributions and accruals from Tyler Technologies.
13. George Pedersen, ManTech: $2.91M
Salary: $1.73M
Bonus: $1M
Other Compensation: $180,000
This fiscal year for ManTech, No. 21 on the CRN SP500, ended Dec. 31. The company's full-year revenue declined 23.4 percent to $1.77 billion due primarily to reduced requirements for U.S. Army support in Afghanistan, while earnings improved from a $6.1 million net loss in 2013 to a $47.3 million net income in 2014.
More than $115,000 of Pedersen's other compensation paid for a driver and other noncorporate uses of employees' time, with most of the remaining $64,000 going toward tax-preparation fees, legal fees, automobile expenses and a club membership.
12. Natarajan Chandrasekeran, Tata Consultancy Services: $3M
Bonus: $2.41M
Other Compensation: $381,000
Salary: $210,000
This fiscal year for Tata Consultancy Services, No. 7 on the CRN SP500, ended March 31, 2014. The company's full-year revenue increase 29.9 percent to $12.85 billion, while net profits soared by 37.7 percent to $3 billion.
The compensation figures for Chandrasekeran do not include provisions for cashing out unused time off, the payment of severance fees or premiums paid for group health insurance.
11. Jeff Davis, Perficient: $3.02M
Stock Award: $2M
Bonus: $520,000
Salary: $483,000
Other Compensation: $17,000
This fiscal year for Perficient, No. 66 on the CRN SP500, ended Dec. 31. The company's full-year revenue increased 22 percent to $456.7 million, while net income jumped 8 percent to $23.2 million.
Davis' other compensation included an $8,000 matching contribution for his 401(k) plan, disability insurance premiums of $7,000, a cellphone allowance of $2,000 and a $1,000 standard life insurance premium.
10. Kris Canekeratne, Virtusa: $3.08M
Stock Award: $2.34M
Salary: $425,000
Bonus: $310,000
This fiscal year for Virtusa, No. 71 on the CRN SP500, ended March 31, 2014. The company's full-year revenue increased 19 percent to $396.9 million, while net income climbed 21.1 percent to $34.4 million.
Canekeratne's compensation partially reflects the equity he has invested into Virtusa as one of its co-founders, the company said.
9. Timothy McGrath, PC Connection: $3.13M
Stock Award: $1.35M
Bonus: $888,000
Salary: $834,000
Other Compensation: $3,900
This fiscal year for PC Connection, No. 24 on the CRN SP 500, ended Dec. 31. The company's full-year sales increased 10.9 percent to $2.46 billion, while net income jumped 19.6 percent to $42.7 million.
McGrath's annual salary was increased on Nov. 1 from $825,000 to $900,000, while his bonus was based on PC Connection achieving its net income and expense leverage goals. Other compensation for McGrath includes a contribution to his 401(k) plan.
8. Ken Lamneck, Insight: $3.22M
Stock Award: $1.9M
Salary: $709,000
Bonus: $586,000
Other Compensation: $22,000
The fiscal year for Insight Enterprises, No. 14 on the CRN SP500, ended Dec. 31. The company's full-year sales increased 3 percent to $5.3 billion, while net earnings were up 7 percent to $75.7 million.
Other compensation for Lamneck included a paid executive physical, long-term disability insurance premium payments, matching contributions to his 401(k), an annual sales incentive trip, cellphone expenses and a contribution to his health savings account.
7. Tom Richards, CDW: $6M
Bonus: $1.84M
Stock Award: $1.63M
Option Award: $1.45M
Salary: $798,000
Other Compensation: $278,000
Deferred Compensation: $13,000
This fiscal year for CDW, No. 8 on the CRN SP500, ended Dec. 31. Full-year company sales increased 12.1 percent to $12.08 billion, while net income soared by 84.4 percent to $244.9 million.
Other compensation included $266,000 in company contributions to Richards' deferred compensation plan, supplemental disability premiums and profit-sharing contributions to his 401(k) account.
6. Bill Stone, SS&C: $8.32M
Bonus: $5M
Option Award; $2.44M
Salary: $ 875,000
This fiscal year for SS&C, No. 41 on the CRN SP500, ended Dec. 31. The company's full-year adjusted revenue climbed 7.8 percent to $768.4 million, while net income jumped 11.2 percent to $131.2 million.
SS&C said it awarded Stone a $5 million bonus based on the company's profitability and increased revenue, his successful recruitment of new managers, the growth of market capitalization and EBITDA, the successful acquisitions of DST Global Solutions and Advent Software, and his maintenance of high-level relationships with key clients.
5. Ed Coleman, Unisys: $10.12M
Other Compensation: $3.51M
Stock Award: $3.35M
Option Award: $1.58M
Salary: $969,000
Bonus: $708,000
This fiscal year for Unisys, No. 17 on the CRN SP500, ended Dec. 31, with full-year revenue declining 3 percent to $3.36 billion, and net income sinking more than 52 percent to $44 million. Coleman left Unisys on Dec. 1 and was replaced by Peter Altabef on Jan 1.
Coleman's other compensation includes $3.46 million in severance payments, $40,000 for a company-paid apartment in the Philadelphia metropolitan area for business purposes and $7,000 in matching contributions to the Unisys savings plan.
4. Francisco D'Souza, Cognizant: $11.33M
Stock Award: $10.18M
Salary: $626,000
Bonus: $512,000
Other Compensation: $17,000
The fiscal year for Cognizant, No. 10 on the CRN SP500, ended Dec. 31. The company's revenue increased 16.1 percent to $10.26 billion, while net income jumped 17.1 percent to $1.44 billion.
D'Souza's other compensation includes $8,000 for use of a company administrative assistant for personal matters, $2,000 for 401(k) matching contributions and $8,000 in taxes related to these services.
3. Michael Boustridge & Dave Peterschmidt, Ciber: $11.83M
Total Compensation: Boustridge: $7.18M; Peterschmidt: $4.65M
Stock Award: Boustridge: $4.23M ; Peterschmidt: $2.98M
Option Award: Boustridge: $1.3M; Peterschmidt: $752,000
Bonus: Boustridge: $1.3M; Peterschmidt: $180,000
Salary: Boustridge: $350,000; Peterschmidt: $345,000
Other Compensation: Boustridge: $127; Peterschmidt: $392,000
The fiscal year for Ciber, No. 38 on the CRN SP500, ended Dec. 31, with full-year revenue declining 2 percent to $863.6 million. Boustridge took over as CEO from Peterschmidt on June 12.
Boustridge received a $950,000 signing bonus, as well as a $350,000 performance-related bonus. Under his watch, the company implemented a $27 million restructuring, which included 280 layoffs.
Other compensation for Peterschmidt included $385,000 in consulting fees connected to his separation from the company.
2. Mike Lawrie, CSC: $13.27M
Stock Award: $5.93M
Option Award: $3.58M
Bonus: $2.18M
Salary: $1.25M
Other Compensation: $323,000
This fiscal year for CSC, No. 4 on the CRN SP500, ended March 28, 2014. The company's full-year revenue declined by 8.4 percent to $13 billion, while net income dropped by nearly 30 percent to $674 million.
Other compensation for Lawrie included $293,000 for fuel, on-board catering, and landing fees associated with his use of company aircraft; $8,000 in matching 401(k) contributions; $2,000 in life insurance premiums; a housing allowance; and an executive medical exam.
1. Pierre Nanterme, Accenture: $15.93M
Stock Award: $11.9M
Bonus: $2.74M
Salary: $1.18M
Other Compensation: $103,000
This fiscal year for Accenture, No. 3 on the CRN SP500, ended Aug. 31. The company's full-year revenue increased by 5 percent to $30 billion, while net income fell 10.5 percent to $3.18 billion.
Nanterme's other compensation included $62,000 for a car and driver, $22,000 for a profit-sharing bonus mandated under French law, $12,000 for life-insurance payments and $7,000 for tax-preparation fees.