EMC CEO awarded $12M pay package in 2010

AP News
Posted: Mar 03, 2011 9:43 PM
EMC CEO awarded $12M pay package in 2010

EMC Corp., the world's biggest maker of data storage computers, awarded its CEO Joe Tucci a compensation package company valued at $12.4 million for 2010, according to an Associated Press analysis of a regulatory filing.

The pay package came in a year when EMC rebounded from the Great Recession's technology-spending downturn. Tucci's compensation deal was disclosed Thursday in EMC's annual proxy filing with the Securities and Exchange Commission.

The package represents a 37 percent bump from a year earlier. Tucci's compensation package in 2009 was valued at $9.0 million.

The bulk of the award was stock and options that will be doled out based on EMC's performance. They were valued at $8.7 million when they were granted in February and August.

Tucci could make more or less than that depending on whether EMC meets certain financial targets and whether the company's stock price rises or falls.

The EMC CEO got a $1 million salary, a $2.6 million cash bonus, and $151,184 in additional compensation last year. The additional compensation covered perks such as his personal use of EMC's private planes, which EMC valued at $135,000 in 2010.

Tucci's compensation reflects the fact that EMC beat its "challenging" internal revenue and profit targets in 2010, the company said in the filing.

EMC's fortunes improved last year. It had suffered in the recession as companies cut their technology-spending budgets.

Businesses perpetually need more storage for their data, but EMC's machines can cost more than $1 million each and are investments that can generally be postponed in a rough economy.

EMC's revenue rose 21 percent to $17.02 billion, and net income increased 75 percent to $1.90 billion, in 2010.

Both had fallen the year before, as EMC fought a drop-off in spending on data storage and cut 2,400 jobs.

As technology demand has improved, EMC's hiring has picked up along with its results. The company added a total of 5,400 workers in 2010, a figure that includes VMware Inc., a maker of "virtualization" software that is majority owned by EMC.

The Associated Press formula for calculating executive compensation is designed to isolate the value that the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

The calculations don't include changes in the present value of pension benefits, making the AP total different in some cases than the total reported by companies to the SEC.

EMC, based in Hopkinton, Mass., set May 4 as the date of its annual meeting.