20 directors and executives at Amdocs Ltd. (NYSE: DOX earned $13.3 million in the company's 2011 fiscal year, which ended in September, triple their salary cost in 2009, the company disclosed in its annual report. The top 20 salary earners made $7.8 million in fiscal year 2010 and $4.4 million in fiscal year 2009. The figure includes cash bonuses, pension, retirement or similar benefits, but does not include business travel, professional, and business association dues expenses, or other fringe benefits.
Amdocs's global workforce rose by 1.9% in fiscal year 2011 to 19,826 employees from 19,455 employees a year earlier. Its Israeli workforce rose by 28 employees to 4,334 employees at the end of September. The rapid growth of its Indian workforce came to a halt: after a 50% increase in fiscal year 2010 to 6,588 employees, there was no change in 2011.
During the fiscal year, Amdocs distributed employee options for 4.2 million shares with an average strike price of $28, similar to its current market price. The company's top 20 employees received options for 1,042,161 shares at an average strike price of $26.57. The options will mature within 3-4 years.
Amdocs employees exercised options for 2.6 million shares during fiscal year 2011 at an average strike price of $21.79, compared with the company's average share price of $28.78 during this period. The potential gain on the options totaled $18.1 million.
Amdocs' biggest customer was AT&T Inc. (NYSE: T), accounting for $922 million of the company's sales in fiscal year 2011, 29%, the same proportion as the $865 million in sales in fiscal year 2010. Bell Canada Inc. (TSX; NYSE: BCE) and Sprint Nextel Corporation (NYSE: S) each accounted for about 10% of Amdocs's revenue. Amdocs added, "Revenue from Bell Canada will be negatively affected by a scheduled price reduction under our contract with Bell Canada to be effective in fiscal 2012."
Amdocs' made one acquisition in 2011: Canadian policy management and network control solutions provider Bridgewater Systems for $214 million.
During the year, Amdocs bought back shares for $625 million at an average price of $28.53 per share.
Amdocs's share price rose 1.9% on Friday to $28.01, giving a market cap of $4.9 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on December 11, 2011
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