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Xerox chief gets $6.5M bonus
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April 9, 1998: 8:11 p.m. ET
Allaire's bonus rises by more than $2 million, proxy shows
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NEW YORK (CNNfn) - Xerox Chairman and Chief Executive Officer Paul Allaire's 1997 bonus increased by more than $2 million to nearly $6.5 million, according to a proxy statement filed Thursday.
While Allaire's salary only grew from $958,333 to $975,000 from 1996 to 1997, his bonus rose from $3,964,900 to $6,479,449.
The news comes just days after the Stamford, Conn., document processing company announced it would cut 9,000 jobs worldwide in a restructuring effort designed to make it more competitive.
Allaire's total bonus was divided between the company's executive performance incentive plan and its long-term incentive plan. The executive performance portion was $2 million and long-term incentives amounted to $4,479,449.
His 1997 compensation represents a large jump from the two previous years. In 1995, Allaire's base pay was $858,333 and total bonus $3,308,499. In 1996, base pay increased by $100,000 to $958,333 and his bonus totaled $3,964,900.
Other compensation from 1995-97 gradually decreased from $184,606 in 1995 to $133,250 last year.
Allaire joined the company in 1966 and has been on its board since 1986.
While Allaire's compensation has been on the rise during the three-year period, so too has the company's profits.
Xerox's profits have grown from a loss of $472 million, or $1.75 a share, in 1995 to a profit of $1.45 billion, or $4.04 a share in 1997.
The news comes on the same day that the AFL-CIO released a new survey showing the average chief executive officer at America's largest corporations received a 38 percent pay increase last year while the average worker received only a 2.9 percent increase.
"There's no question that executive compensation is out of control," AFL-CIO Secretary-Treasurer Richard Trumka said.
The AFL-CIO said it will work with shareholder activists to push for proxy votes against large pay hikes.
"While CEOs get multimillion dollar sweetheart deals, working families suffer downsizings and layoffs," Trumka said.
Xerox (XRX) closed at 113, up 1 from Wednesday's close.
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