Payoffs At A Downsized DecGary Mcwilliams
Restructuring is painful, what with layoffs and plant closings, but it can be lucrative uork. Take Digital Equipment, whose $2.1 billion loss for the fiscal year ended July 2 is its second-worst ever. Total pay for its five top execs rose 70% in that year.
A just-released proxy says expanded duties for Vice-President Enrico Pesatori earned him an 18% raise in the new year, and Charles Christ got one of 35% to lead a new unit. CEO Robert Palmer got no cash raise, but directors awarded him stock options. Since Wall Street optimism on DEC is boosting its stock lately, Palmer has a paper profit that exceeds his $900,000 salary.
Execs shed in the restructuring didn't do shabbily. Earlier this year, sales head Edward Lucente walked away with a $630,000 settlement, and consulting chief Gresham Brebach Jr., $500,000. Outside director and Compensation Committee Chairman Thomas Phillips declined