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Tech's $20 million CEOs

Twelve of the 50 CEO pay packages examined are worth more than $20 million when salary, bonuses, stocks, options and perks are tallied

By , Network World
May 24, 2012 12:01 AM ET

Network World - Eyebrow-raising executive compensation shows no signs of abating, and Network World's analysis of CEO pay finds the tech/telco industry is no exception.

The average CEO pay for companies in the S&P 500 Index climbed to $12.9 million in 2011, according to AFL-CIO, a federation of labor organizations. That's a 13.9% increase and follows a 22.8% jump in CEO pay in 2010. By comparison, the average pay for workers climbed to $34,053 in 2011, an increase of 2.8%.

IN PICTURES: Who are tech's highest paid CEOs?

Within the tech/telco industry, 20 of the 50 CEO pay packages we examined are worth more than $12.9 million. Of those, 12 CEOs' pay exceeded $20 million when all the compensation elements -- including salary, bonuses, stocks, options and perks -- are added up. Just two of the packages amounted to less than $1 million.

(You can find all the details in our slideshow, which compares each CEO's pay to the company's revenue/profit performance. We've also put together a sortable table below of the 50 tech execs' pay packages, for an easy comparison of elements such as salary, bonus and equity awards.)

At the low end of the CEO pay scale are Google's Larry Page and Aruba Networks' Dominic Orr. Page received a $1 salary in 2011, declining any bonuses and equity awards. Orr's modest compensation, valued at $933,429, included a $400,000 salary, equity awards worth $525,001, and $8,428 in perks.

At the top of our tally is Apple CEO Tim Cook, whose 2011 pay is valued at a whopping $378 million. Granted, most of it won't wind up in Cook's bank account anytime soon. The bulk of his compensation is a $376 million "promotion and retention award" consisting of 1 million restricted stock units (RSU). Half of the stock units are scheduled to vest five years after the date Cook assumed the CEO role, and half after 10 years, as long as Cook stays employed at Apple.

Oracle's Larry Ellison, who has been the highest paid tech chief on our list each year since Network World started tracking CEO compensation, received the second-largest pay package. His $77.6 million windfall consisted of a $1 salary, $13.3 million bonus, option awards valued at $62.7 million, and perks worth $1.5 million.

Three of the 12 CEOs who made $20 million or more are no longer with their companies: Former Verizon CEO Ivan Seidenberg ($26.5 million), who retired last August; former HP CEO Leo Apotheker ($30.4 million), who lasted less than a year on the job; and retired IBM chief Sam Palmisano ($31.8 million), who turned over the CEO reins to Ginni Rometty in January. 

The other seven tech/telco CEOs who made more than $20 million in 2011 are: Salesforce.com's Marc Benioff ($20.8 million), Qualcomm's Paul Jacobs ($21.7 million), AT&T's Randall Stephenson ($22 million), Verizon's Lowell McAdam ($23.1 million), Comcast's Brian Roberts ($26.9 million), Motorola Solutions' Greg Brown ($29.3 million), and Motorola Mobility's Sanjay Jha ($47.1 million).

Tech CEO pay

CEO Salary Bonuses Equity awards Perks, other comp Total 2011 compensation % change
Larry Page - Google 1 0 0 0 1 -100%
Dominic Orr - Aruba Networks 400000 0 525001 8428 933429 -99%
Steve Ballmer - Microsoft 682500 682500 0 11915 1376915 -99%
Paul Maritz - Vmware 750000 815625 0 0 1565625 -100%
Jeff Bezos - Amazon.com 81840 0 0 1600000 1681840 -5%
Oscar Rodriquez - Extreme Networks 473140 886435 1704060 97714 3161349 n/a
Michael Klayko - Brocade 760096 1209529 2045600 6855 4022080 -100%
Michael Dell - Dell 950000 3385000 0 13373 4348373 -100%
Jim Balsillie - RIM 1175664 1204761 2708340 23363 5112128 -100%
Mike Lazaridis - RIM 1175664 1204761 2708340 23363 5112128 -100%
Greg Spierkel - Ingram Micro 850000 1554075 4577935 22350 7004360 -100%
John Coyne - Western Digital 978846 4308750 1676928 43250 7007774 -99%
Jim Whitehurst - Red Hat 750000 1134375 5517300 5539 7407214 -100%
John McAdam - F5 687119 613051 6406726 600 7707496 -100%
Bill McCracken - CA 1000000 1266000 5547344 214091 8027435 -97%
Mark Templeton - Citrix 862500 956532 6332977 19355 8171364 -100%
Tom Georgens - NetApp 861539 2217265 5262647 672 8342123 -100%
Enrique Salem - Symantec 750000 4281250 3444458 33975 8509683 -100%
Glen Post - CenturyLink 1020800 1224960 4706735 1601789 8554284 -81%
Dirk Meyer - AMD 83623 0 0 8680658 8764281 -1%
Jerry Kennelly - Riverbed 565000 923161 7469700 576 8958437 -100%
Kevin Johnson - Juniper 960000 754320 8965850 13233 10693403 -100%
Shantanu Narayen - Adobe 896434 1198980 8699323 30373 10825110 -100%
Bill Nuti - NCR 1000000 4272875 6303479 129189 11705543 -99%
Francisco D'Souza - Cognizant 566500 908248 10285710 1500 11761958 -100%
Paul Sagan - Akamai 756843 119988 10999916 0 11876747 -100%
Dan Hesse - Sprint Nextel 1200000 5673594 4914768 94289 11882651 -99%
Michael Laphen - CSC 1107692 1314000 7305566 2819090 12546348 -78%
Bob Beauchamp - BMC 950000 2903580 8800418 18814 12672812 -100%
John Chambers - Cisco 375000 0 12500100 11025 12886125 -100%
Ursula Burns - Xerox 1100000 990000 7500106 3312501 12902607 -74%
Joe Tucci - EMC 1000000 2140869 9966465 131523 13238857 -99%
Rich Templeton - Texas Instruments 990087 2778118 9883575 403987 14055767 -97%
Rory Read - AMD 353847 1530770 13699911 25823 15610351 n/a
Scott McGregor - Broadcom 858077 1844063 13369005 5146 16076291 -100%
Glenn Britt - Time Warner Cable 1250000 7210938 7421524 551366 16433828 -97%
Meg Whitman - HP 1 0 16146331 372598 16518930 n/a
Paul Otellini - Intel 1100000 6463500 9133900 794500 17491900 -95%
Marc Benioff - Salesforce.com 900000 900000 19015290 0 20815290 -100%
Paul Jacobs - Qualcomm 1150591 5507125 14322329 742288 21722333 -97%
Randall Stephenson - AT&T 1550000 3787500 12795522 3885312 22018334 -82%
Lowell McAdam - Verizon 1400000 2362500 18750099 607900 23120499 -97%
Ivan Seidenberg - Verizon 2100000 3543750 19548757 1262600 26455107 -95%
Brian Roberts - Comcast 2800761 5461484 11584925 7086907 26934077 -74%
Greg Brown - Motorola Solutions 1200000 4100000 23769920 259132 29329052 -99%
Leo Apotheker - HP 1152770 6400000 17660759 5199247 30412776 n/a
Sam Palmisano - IBM 1800000 6500000 14307565 9191353 31798918 -71%
Sanjay Jha - Motorola Mobility 1188461 1782692 43623542 557992 47152687 -99%
Larry Ellison - Oracle 1 13341994 62668200 1545820 77556015 -98%
Tim Cook - Apple 900017 900000 376180000 16520 377996537 -100%

Common to each of the $20+ million pay packages is the predominance of incentive-based compensation, meaning pay that's tied to company performance. That's a trend compensation consultancy Steven Hall & Partners has been tracking for some time and continues to see in its research.

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