EMC has cut the pay of CEO Joe Tucci and four other senior executives by ten per cent. It also has an agreement with Tucci to secure continuity of his employment to the end of 2010 - but why? In an SEC filing its Leadership and Compensation Committee report said: "Given the challenging global economic environment, as part of our …
'Bout time Too !
Well given the times its in the right direction.
Be interesting to compare EMC and VMWare's carbon footprints compared to IT industry peer group.
Lots of recent bad press on the exec jets jetting off to climate change meetings and seminars.
10% of a Million has less effect that 10% of a lowly engineer's pay and rations though, so disproportionate.
People appreciate reasonable fairness.
To get EMC really flying they should have gone for at least 17 - 27% Tucci reduction or more at the top, less for the tiers below and minimal for the lowest of the low and watch the effect on motivation, loyalty and productivity !
Why Tucci tenure move? Well suppose EMC is a nice takeover target for someone like CISCO and the EMC board wishes to placate shareholders and keep them in line . . .
This probably means he can cling-on like a limpet !
The other thing to watch is options trades of the people at the top - much more lucre is made that way on top of pay and perks.
. . . and of course its another distraction when they should be firmly running the firm.
It's interesting that EMC say "a 10% wage decrease" but don't actually say what his wage is, isn't it ...
According to this http://www.byteandswitch.com/document.asp?doc_id=85912 as of 2005, his wage was $1 million.
"As reported earlier this year, Tucci earned a 2004 base salary of $1 million, plus a cash bonus of $1.88 million."
As of 2009, let's estimate conservatively that his wage didn't increase, so that he's still on $1 million + $1.88 million.
10% wage decrease = $0.8 million base wage + $1.88 million bonus
so, in total, he will get a (measly) $2.68 million this year.
I mean, that's outrageous, how can a man be expected to live on $2.68 million per year ??? It's not fair, are they trying to make this man a pauper ??? Tucci is clearly feeling the pain of this recession far far far more than you or I. Have sympathy for the man, that 10% reduction is going to destroy his life !!!
Good screw em
Serves them right for screwing with VMware management. Losing Diane Greene was purely due to political reasons, she out shined him. And everyone knew it so he got rid of her.
I say fire his stupid ass, and have Diane Greene run both companies.