Compaq Computer's new president and CEO Michael Capellas will earn $US850,000 in annual base pay and receive a host of performance incentives, according to a quarterly report the company filed with the US Security and Exchange Commission (SEC) late Friday.
Capellas was officially appointed to the top position at the PC maker last month after effectively running the company in the wake of the April ousting of Eckhard Pfeiffer, Compaq's previous president and CEO.
In addition to his base pay, Compaq's newly minted boss will receive options for 1 million shares of Compaq stock, a $5 million loan to purchase shares, and 200,000 restricted shares which vest after five years. The restricted shares may vest earlier depending on Compaq's market performance -- if the company's stock price remains equal to or above $35, $40 or $50 for more than 30 consecutive trading days.
Compaq ended Friday trading at $23.06, up 1.37 per cent on the previous day's share price of $22.75.
The Friday SEC filing also laid out Pfeiffer's severance package, which included a $9.81 million payout. The former Compaq CEO and president, who was elevated to those roles in October 1991, will also take away 13.5 million stock options earned during his tenure at the company. Reports yesterday valued the stock options at around $410 million.
Pfeiffer left Compaq in April after the company was forced to drastically cut its earnings forecast for the first quarter of this year, ended March 31, 1999.