EMC CEO Joe Tucci was awarded a compensation package valued at $9 million in 2009, according to documents filed this week with the U.S. Securities and Exchange Commission.
His total compensation declined 23 per cent compared to 2008, when his pay package was valued at $11.7 million.
Tucci's pay includes his $872,308 salary (down from $1 million in 2008); a $1.1 performance-based bonus (down from $1.4 million a year earlier); and $149,150 in perks and other compensation.
The bulk of his 2009 pay package came in the form of stock and option awards, which were valued at $7 million at the time they were granted (down from $9 million in 2008).
As a company, EMC saw revenue decline 6 per cent and profit fall 15 per cent in 2009. EMC reported net income of $1.1 billion on revenue of $14 billion in 2009. In 2008, the company reported net income of $1.3 billion on revenue of $14.9 billion.
Tucci's lower salary and bonus reflect temporary cuts imposed last year at his recommendation.
"Given the challenging global economic environment, as part of our ongoing cost reduction initiatives, we implemented a temporary company-wide pay reduction program in 2009," EMC says in its proxy statement. "As part of this program, we reduced our executive officers' base salaries by 10 per cent in January 2009 and by an additional 5 per cent in May 2009, and we reduced the target annual bonus by 30 per cent for Mr. Tucci and 10 per cent for the other Named Executive Officers. Overall, we reduced our executive officers' total target compensation in 2009 by an average of 15%."
The base salaries for named executive officers were restored to their 2008 levels for 2010, EMC says.
Tucci's total pay is calculated using data supplied in a proxy statement filed with the SEC on March 18. The following figures are taken from the summary compensation table: salary, bonus, non-equity incentive plan compensation, and all other compensation (perks). Added to those figures is the estimated value of stock options and awards granted during the year; that figure is taken from the table that summarizes grants of plan-based awards. The calculations don't include changes in the value of pension benefits.