Dell CEO earns less than predecessor

Dell CEO earns less than predecessor

	Published : Wed, 31 Oct 2007 23:43 By : Agencies Print this Story

DALLAS (AP) - Michael Dell, the Dell Inc. founder who this year resumed control of his computer company, received compensation the company valued at more than $2 million in fiscal 2007, according to an analysis of a regulatory filing Wednesday.

Dell was paid a $950,000 salary. He also received slightly more than $1 million for a home security system, $8,800 in matching 401(k) funds and $1,081 for term life insurance.

Dell, who started the company in his college dorm room in the 1980s, replaced Kevin Rollins as chief executive officer in January as the company faced an earnings probe and slipping market share.

Dell earned less than Chief Financial Officer Don Carty, the former chief executive at American Airlines who joined Dell last year.

Carty received compensation the company valued at more than $3 million. His salary was lower, at $51,154, but his stock and option awards had an estimated value of $2.9 million when they were granted.

The compensation for Rollins, who was Dell's hand-picked successor before stepping down in January, dwarfed that of any other executive.

He received $9.5 million, the bulk of which came from stock and option awards that had an estimated value of $8.5 million when they were granted in March. The remainder of his pay included a $950,000 base salary and $2,650 for term life insurance.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

The executive salary reports were filed a day after Dell posted revised earnings for the past four years that reduced profits by $92 million.

The restatements came after a yearlong internal investigation found employees had misled auditors and manipulated results to meet performance goals in fiscal years 2003 through 2006, as well as the first quarter of fiscal 2007.

The past year has been a rough time as Dell lost market share to competitors such as Hewlett-Packard Co. and others. Last fall, HP overtook Dell for the No. 1 spot in PC sales.

Dell has countered by striking retail deals around the world, most recently with Staples Inc.

Dell still faces an SEC probe into accounting and shareholder lawsuits. Federal prosecutors in New York have subpoenaed documents on the company's financial reporting since 2002.

Dell scheduled its annual stockholders meeting for Dec. 4 at the company's Round Rock headquarters. There will be a vote to elect the board of directors, among other topics.

Shares hit a 52-week high to close up 80 cents, or 2.7 percent, to $30.60, in trading Wednesday.

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