Applied Materials Still Pays for CEO's Move After Deal Scrappedby
Dickerson paid $4 million for Japan relocation, higher taxes
Combination with Tokyo Electron terminated in April 2015
Applied Materials Inc. terminated its merger with Tokyo Electron Ltd. in April, yet costs associated with moving Chief Executive Officer Gary Dickerson to Japan to oversee the deal skyrocketed last year.
Dickerson’s move almost two and a half years ago cost the semiconductor maker $4 million in 2015, a 10-fold increase over the previous year. Most of that, $3.6 million, was to compensate Dickerson for higher taxes he paid in Japan as restricted stock worth $15.2 million vested to him.
The remainder went to pay for housing, transportation, moving expenses, a cost-of-living adjustment, education reimbursements and an allowance, according to the company’s proxy statement filed Wednesday. In its most recent quarter, Applied Materials reported net income of $336 million on $2.37 billion of sales.
Kevin Winston, a spokesman for Santa Clara, California-based Applied Materials, didn’t immediately return calls and e-mails seeking comment.
In late April, Tokyo Electron fell the most in more than three decades after Applied Materials scrapped its $9.39 billion takeover bid for the manufacturer of chipmaking equipment amid opposition from the U.S. Department of Justice. The companies weren’t able to allay government concerns about the potential impact on competition.