Sun investors blast fat cat greed (generous executive compensation)

[Omaha Steve]

http://www.theregister.co.uk/2006/09/21/sun_fatcat_pay_veto/

Sun investors blast fat cat greed
Pension funds call for veto
By Andrew Orlowski → More by this author
Published Thursday 21st September 2006 15:01 GMT
Free whitepaper - Improved J2EE Performance and User Experience with Pre-production Testing

Despite losses nearing $1bn over the past year, Sun Microsystems' top executives are cashing in.

CEO and president Jonathan Schwartz and chairman Scott McNealy have seen their rewards increase several hundred per cent over the past 12 months.

Now two of Sun's major institutional investors have taken aim at what they call "excessive" compensation for a period in which the company has been in the doldrums. Two public pension funds - the AFL-CIO union's AFSCME and the Connecticut Retirement fund - have tabled a motion calling for an annual referendum on the work of Sun's generous executive compensation committee.

The astronomical bonuses and the shareholder motion were disclosed in a SEC filing yesterday.

CEO Jonathan Schwartz saw his remuneration rise a whopping 660 per cent, up from $3m in 2005 to $22.8m in 2006. Schwartz started the year as president and COO, swapping the latter title for CEO in April. Chairman Scott McNealy had to settle for a more modest 292 per cent increase.

Schwartz took home almost $900,000 and $568,000 in salary and cash bonuses last year, with McNealy receiving $127,489 and $933,450 in bonuses. But the bulk of the bosses' bounty came in the form of restricted stock - Schwartz was granted $12.97m and McNealy $6.7m.


FULL story at link above.
-------------------------------------
EDIT: COPYRIGHT. PLEASE POST ONLY
4 OR 5 PARAGRAPHS FROM THE COPYRIGHTED
NEWS SOURCE PER DU RULES.