EMC's top five executives, including CEO Joe Tucci, are taking 10% pay cuts, the storage vendor reported to the Securities and Exchange Commission this week.
Tucci, who was paid US$1 million salary and a $1.4 million performance-based cash bonus in 2008, recommended that EMC slash pay by 10% in 2009 for himself and executives David Goulden, Howard Elias, William Teuber and David Donatelli, according to the SEC filing.
"Given the challenging global economic environment, as part of our ongoing cost reduction initiatives, we reduced our executive officers' cash compensation in 2009," EMC stated.
Tucci's base salary will drop from $1 million to $900,000 in 2009. Pay for Goulden and Elias will drop from $600,000 to $540,000, while Teuber and Donatelli will see their pay cut from $700,000 to $630,000.
EMC also plans to reduce Tucci's projected annual bonus by 30%, resulting in an overall 22% decrease in cash compensation. The other four executives will see 10% declines in annual bonuses.
According to EMC's most recent filing, Tucci's total compensation including salary, bonuses, and stock and option awards was $11.7 million in 2008. The value of his compensation package more than doubled from 2007, when he received a $4.7 million package (which didn't include any stock grants).