UPDATE - CEO Paid $21.2 Million Last Year to Pull Co. Out of Y2K Doldrumsgreenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread
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Title: Cambridge Tech CEO gets $21.2M Source: Boston Herald Publication date: 2000-04-29
The top executive at Cambridge Technology Partners Inc. received a pay package valued at about $21.2 million last year to pull the information technology company out of the Y2K doldrums and into the slipstream of the Web economy.
Since Jack L. Messman negotiated his pay package in August to become chief executive of Cambridge Tech, the company's stock has slipped to $11 a share after hitting a 52-week high of $27 a share on Dec. 30. Messman, 59, replaced company founder James Sims, who oversaw years of torrid growth before corporations slowed spending on computer services to prepare for expected Y2K glitches.
Much of Messman's pay package, disclosed this week in a filing with the Securities and Exchange Commission, is tied to a restricted stock award currently valued by the company at $3.3 million and 1.3 million stock options potentially worth as much as $17.1 million.
Cambridge Tech said a significant amount of that money represents what Messman forfeited by leaving his job as chairman of Union Pacific Resources Group Inc., an oil and gas exploration company.
In addition, the company also took into account Messman's experience as a former president of Novell Inc. and his seven years as a Cambridge Tech director.
Messman's pay package also included a salary of $270,833 for a partial year's work and a December bonus of $500,000.
Cambridge Tech yesterday reported a 59 percent surge from its Internet business during the first quarter, but Messman said in a prepared statement that Y2K's aftershock hurt the company's overall performance.
Cambridge Tech lost $4.3 million, or 7 cents a share, in the first quarter, compared with earning $7.5 million, or 12 cents a share, during the year-ago period. Revenue slipped 3 percent to $147.6 million, down from $151.4 million.
Publication date: 2000-04-29 ) 2000, YellowBrix, Inc. http://realcities.yellowbrix.com/pages/realcities/Story.nsp?story_id=10245088&site=charlotte&ID=realcities&scategory=Computers%3AY2K
-- (Dee360Degree@aol.com), April 29, 2000