Dell Inc. awarded Chief Executive Michael Dell a compensation
package the computer maker valued at $13.9 million, largely in
stock awards, as the company pursues a deal to sell itself to Mr.
Dell and a private-equity firm.
Mr. Dell earned less than the prior year, when the company
valued his compensation at $16.1 million, the majority in stock and
stock-option awards. In the latest fiscal year, the company posted
operating income of $3.01 billion, 32% lower than operating income
a year earlier.
The compensation for the fiscal year ended Feb. 1 was included
in a document filed Monday with the Securities and Exchange
Commission. The filing said Mr. Dell's compensation consisted of
restricted-stock units the company valued at $11.6 million, a $1.33
million bonus and a $950,000 salary.
If Dell shareholders approve the pending buyout led by Mr. Dell
and Silver Lake Partners, the value of executives' stock units will
be paid out in cash.
The SEC filing said the board's compensation committee
"considered Mr. Dell's leadership and performance for the year as
reflected in Dell's financial results and the progress made towards
Dell's strategic transformation."
Among other senior executives, Dell software chief, John
Swainson, got a compensation package valued at $10.4 million. Chief
Financial Officer Brian Gladden and Chief Operating Officer Jeffrey
Clarke were each awarded compensation the company valued at $7.1
million, largely in stock awards.
The board in April also approved a $91.1 million special bonus
pool to encourage top tiers of executives, other than Mr. Dell, to
stick with the company. Participating employees also will be
eligible to have their Dell equity paid out to them if they are
fired without cause within two years after the company changes
hands.
Write to Shira Ovide at shira.ovide@dowjones.com
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