NEW YORK (CNN/Money) -
Dell Computer Corp., soon to be just Dell, said it plans to pay cash bonuses to a group of senior executives even as it cuts stock-option awards for employees, according to its SEC filings.
The world's largest PC maker said it will also drop the word "computer" from its corporate name because it will better reflect its evolution.
In Monday's filing with the SEC, Dell said that while it began as a supplier of personal computers, its capabilities were now much broader, "and we are a leading seller of servers, storage systems and other technology products and services."
Dell said in its annual report for the year ended Jan. 31 that desktop computer systems and notebook computers, including services, software and other associated technology, accounted for about 80 percent of its revenues.
Enterprise systems and associated technology, which includes powerful server computers and data storage systems, accounted for the remaining 20 percent. Dell competes against companies including Hewlett-Packard Co. (HPQ: Research, Estimates) and International Business Machines Corp. (IBM: Research, Estimates) in this area.
Dell (DELL: Research, Estimates) recently began selling its own brand of handheld computers, computer printers and network switches.
Dell also said in its proxy that founder and chief executive Michael Dell received an annual bonus in fiscal 2003 of $2.48 million, or 174 percent of his target bonus based on goals for revenues and profits.
That's up from the previous year, when his bonus was $347,236 and only 25 percent of the target because the company had not met internal revenue goals. Dell's salary rose to $950,000 in fiscal 2003 from $925,962 a year earlier.
Chief Operating Officer Kevin Rollins received a bonus of $2.01 million, up from $243,389 a year earlier.
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Dell distributed fewer options to its five most highly compensated executives in fiscal 2003 than in fiscal 2002. Dell said earlier this year that it would issue fewer options because of a looming accounting rule change that may require companies to treat options as expenses.
Michael Dell received 500,000 options, compared with 1 million a year earlier, and Rollins also received 500,000 options, down from 5.35 million in fiscal 2002.
Michael Dell had $82 million worth of exercisable options at the end of fiscal 2002, when the stock traded at $23.86. Rollins had $78.9 million worth of exercisable options.
-- from staff and wire reports
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