Juniper’s New CEO Gains $14.5 Million in CompensationDenni Hu
Juniper Networks Inc. plans to pay new Chief Executive Officer Rami Rahim a compensation package totaling about $14.5 million, according to a filing.
Rahim will be paid an annual salary of $1 million, a target bonus of as much as $1.75 million, an equity award valued at $6.75 million and $5 million in restricted shares, according to the filing yesterday.
Rahim is earning an almost identical package to his predecessor, Shaygan Kheradpir, who stepped down on Nov. 10. Kheradpir was also eligible for a $5 million signing bonus.
Danielle Hamel, a spokeswoman for the Sunnyvale, California-based networking-gear company, declined to comment.
Rahim was appointed CEO earlier this month after Kheradpir stepped down following a board review of his conduct related to a customer negotiation. Board members and Kheradpir have “different perspectives regarding these matters,” Juniper said in a statement at the time. The company didn’t identify the customer.
Rahim, 43, joined Juniper in 1997 and has helped develop some of its key products. He has won praise as a technologist who knows Juniper’s products well.
Juniper has faced several challenges this year, including executive shifts and activist pressure amid shrinking revenue. Kheradpir replaced Kevin Johnson in January and that same month, Juniper was targeted by activist hedge fund Elliott Management Corp. In February, the company bowed to Elliott’s pressure for cost cuts and share buybacks, unveiling plans to return at least $3 billion to shareholders and to reduce $160 million in expenses.
Last month, Juniper forecast fourth-quarter revenue and profit that fell short of analysts’ estimates. The company also announced an expansion of its capital return plan, increasing its share repurchases by $1.1 billion.
The shares rose 1 percent to $22.26 at the close in New York, leaving them down 1.4 percent for the year so far.