Qualcomm Gives Chairman Jacobs $45 Million of StockIan King
Qualcomm Inc., the world’s largest maker of mobile phone chips, said it gave stock awards and pay raises to senior executives including Executive Chairman Paul Jacobs to retain them.
Jacobs received a one-time equity grant of restricted stock units valued at $45 million that will vest based on certain profit goals being met, the company said in a filing dated May 5 that was made public yesterday. President Derek Aberle’s salary is being boosted to $780,000 a year, with an annual bonus target of as much as 135 percent of that amount, the company said. He also got restricted stock valued at $16.1 million and a special one-time stock grant of $10.5 million.
The compensation shifts follow recent management changes at the San Diego-based chipmaker. In December, Jacobs said he would step aside as chief executive officer to become executive chairman, making way for then-president Steve Mollenkopf to replace him as CEO. Mollenkopf had earlier been approached by Microsoft Corp. to become CEO, people familiar with the matter have said. The men officially stepped into their new roles in March.
In December, Qualcomm increased Mollenkopf’s salary to $1.1 million and awarded him stock worth $50 million over the next five years.
With the new changes, Jacobs will receive a salary of $1 a year, with the rest of his compensation based on equity. The stock awards are contingent on him staying with the chipmaker. They will vest in three equal amounts on the third, fourth and fifth anniversaries of the grant date.
Qualcomm said it is also front-loading restricted stock for each of the company’s eight executive vice presidents over the next three years, mirroring the compensation structures of Mollenkopf and Aberle.
Qualcomm’s stock, up 7.1 percent this year, rose less than 1 percent to $79.50 at the close in New York yesterday. The stock climbed an average of 16 percent between 2009 and last year.