AT&T CEO Randall Stephenson received a smaller bonus and the company slashed the value of his executive perks in 2010, as the telecommunications carrier reported a slight uptick in revenue and a giant leap in net income compared to a year earlier.
AT&T chief Randall Stephenson received a smaller bonus and the company cut the value of his executive perks in half in 2010, as the telecommunications carrier reported a slight uptick in revenue and a giant leap in net income compared to a year earlier.
Stephenson, who is chairman, president and CEO of AT&T, received compensation worth $27.3 million in 2010, down 6% from $29.2 million in 2009, according to documents filed Thursday with the U.S. Securities and Exchange Commission.
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For the 2010 fiscal year ended Dec. 31, Stephenson received a cash bonus of $5.1 million, which is down 14% from the $5.9 million bonus he received a year earlier. His pay package also includes a $1.5 million salary, which is up slightly from the salary he received in 2009.
The bulk of Stephenson's 2010 compensation came in the form of equity awards. He received stock awards valued at $12.7 million at the time they were granted (up 6% from $12 million in 2009) and option awards valued at $494,731 (a more than sixfold increase from $75,834 in 2009).
The value of Stephenson's perquisites and other compensation fell 52% from $864,632 in 2009 to $417,410 last year. His 2010 perks included: $77,182 for personal use of company aircraft; $30,504 for home security; $28,991 for auto benefits; $15,174 for club memberships; $14,000 for financial counseling, including tax preparation and estate planning; $11,256 for supplemental health insurance premiums; and $2,714 in communications expenses. Stephenson also received $164,189 in company-paid premiums on supplemental life insurance and $73,400 for matching 401(k) contributions.
The declines in Stephenson's bonus and perks were offset by his salary bump and greater equity awards. The 6% difference between his 2009 and 2010 pay packages can be attributed to changes in the value of his pension plan, which was reported at $7.1 million in 2010 compared with $9 million a year earlier. (See how Stephenson's compensation compares to that of IBM CEO Sam Palmisano and EMC CEO Joe Tucci.)
The company, meanwhile, grew revenue and profits by 1.4% and 64%, respectively, in 2010. AT&T's revenue came in at $124.3 billion, up from $122.5 billion in 2009. Net income attributable to AT&T hit $19.9 billion, up from $12.1 billion in the prior year.
Stephenson's total pay is calculated using data supplied in a proxy statement filed with the SEC on March 10. The following figures are taken from the summary compensation table: salary, stock awards, option awards, non-equity incentive plan compensation (performance-based cash bonus), change in pension value and nonqualified deferred compensation earnings, and all other compensation. The estimated value of equity awards represents the aggregate grant date fair value of stock awards and option awards granted during the fiscal year.