Ronald A. Rittenmeyer, the new CEOof Electronic Data Systems Corp., received compensation of nearly $14 millionfor 2007, a 10-percent increase reflecting his promotion and the company’sincreased profit even as its stock price dropped, reports the Associated Press.
Rittenmeyer took the helm at EDS in Septemberfrom Michael H. Jordan,who stayed on as chairman of the technology consultant untilthe end of the year; Rittenmeyer not only holds the CEO title, he was paidabout $13.6 million, according to figures from a proxy statement filed yesterdaywith the Securities and Exchange Commission.
The two men’s combined pay rosenearly 17 percent in 2007 to more than $30 million, mostly in stock awards and options.Last year, the profit at EDS jumped 52 percent, to $716 million, butstockholders weren’t rewarded, and the shares fell 25 percent during 2007,according to AP.
Rittenmeyer, who was president andCOO before becoming CEO in September, saw his compensation climb 10 percentfrom 2006: He was paid a salary of $1.1 million, a bonus of $753,862, another$1.5 million as a performance-related bonus, and other compensation of $70,761,mostly for the personal use of company aircraft.
But the bulk of Rittenmeyer’scompensation came from stock options and grants, valued at $10.1 million whenthey were issued in March and August.
Comparably,
Jordan, a retired CEO of CBS, wasrecruited to lead a turnaround after EDS stumbled with earning shortfalls and aprobe of its accounting practices.
The performance-related incentives– $1.5 million for Rittenmeyer and $1.7 million for