Given the fact that Comverse Technology Inc. (Pink Sheets: CMVT) has published no financial reports in three years and that president and CEO Andre Dahan has made none of the promised restructuring at the company since he took up his post two years ago, it will be interesting to know whether shareholders consider the salary terms for its executives properly reflect the company's performance to date.
On Friday, Comverse notified the US Securities and Exchange Commission (SEC) on Form 8-K that it paid three EVPs - CFO Joseph R. Chinnici, global head of human resources Lance Miyamoto, and Comverse Inc. president global sales Urban Gillstrom - between $200,000 and $219,000, for a total of $619,000. In addition, Chinnici received 36,000 stock option grants, Miyamoto received 56,000 options, and Gillstrom received 40,000 options, for a total of 132,000 deferred stocks.
The payments come after the company recently fired hundreds of employees.
Compared with Comverse's grants last year, the current announcement shows smaller cash bonuses and larger stock option grants. In 2008, Miyamoto received a bonus of $285,000 in cash and 40,000 stock options, while Chinnici's predecessor received $350,000 in cash and 30,000 stock options.
Comverse has not yet disclosed the annual bonus paid to Dahan for the 2008 fiscal year. In 2007, he received a bonus of $1.8 million in cash and 318,000 stock options at a time when the share had achieved a yield of minus 37% and the company had fired hundreds of employees.
Published by Globes [online], Israel business news - www.globes-online.com - on April 12, 2009
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