April 10, 2013
Democrat and Chronicle reports that Xerox Corp had a “so-so” year during 2012, with a revenue of $22.4 billion (€17.1 billion) and a decrease in adjusted earnings by around 4.6 percent from the previous year. Shareholders of the company were also unimpressed, with company stock averaging $7.50 (€5.73) – a decrease of 2 percent from 2011.
However, the article states that Xerox’s top executives were still rewarded significant amounts of money, with many receiving more compensation than in 2011.
Ursula Burns, CEO of the company saw a slight increase in compensation from $9.7 million (€7.4 million) to $9.9million (€7.56 million); former CFO Luca Maestri received around $5.5 million (€4.2 million) compared to the previous year’s $3.9 million (€2.9 million); Xerox Services President Lynn R. Blodgett saw a significant increase of almost $4 million (€3 million) on 2011, receiving $7.6 million (€5.8 million); and Technology President Armanda Zagalo de Lima received $6 million (€4.6 million) compared to 2011’s $5.1 million (€3.9 million).
According to Xerox’s annual proxy statement, most of the compensation came in the form of stock awards, with actual salary representing only a fraction of its total. For example, of Burns’ $9.9 million, just $1.1 million (€840,400) was salary and $7.75 million (€5.9 million) was stock awards, with Burns also receiving over $1 million in a cash bonus. Furthermore, none of the top executives saw an increase in salary in 2012 except Maestri, who saw a rise of 10 percent.
Xerox also said that it bases its pay by comparing itself with similar-sized companies, claiming that Burns was four percent below the median.
In addition to stock, paycheques and cash bonuses, Xerox’s top executives also receive a number of fringe benefits including personal use of corporate aircraft, life insurance premiums and international assignment allowance to cover expenses such as housing in different countries for those who have relocated for work purposes.
Categories : Products and Technology