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McAfee chief gets $16M pay package

McAfee chief gets $16M pay package

McAfee Inc.'s chief executive, David DeWalt, received a pay package valued at nearly $16 million in 2008, mostly equity awards, in his first full year in the top job at the security software maker, according to calculations by The Associated Press based on a regulatory filing Tuesday.
The 44-year-old, who was tapped for the CEO job in 2007 to clean up the aftermath of a stock-options mess, was rewarded for a solid year for the Santa Clara-based company.
McAfee's sales jumped 22 percent to $1.6 billion, while profit rose 3 percent to $172.2 million, in 2008.
A large part of DeWalt's pay is wrapped up in long-term equity awards. Their value depends on McAfee's future stock price and the company's financial performance, and only become available to him in chunks every year.
DeWalt pulled down a $950,000 base salary, got a $1 million bonus, had $34,224 in perks such as commuting expenses and a living allowance in 2008, McAfee said in its annual executive-compensation filing with the Securities and Exchange Commission.
The bonus was just $50,000 shy of his target.
The biggest part of DeWalt's compensation package was stock and options worth more than $14 million on the dates they were granted. He doesn't get that money all at once, though, since the awards vest at different times. And the amount DeWalt will ultimately pocket will probably be different because of fluctuations in the stock price.
DeWalt was named CEO after an accounting scandal that led to the resignation of the previous CEO, the firing of McAfee's president, and criminal indictment of the company's former general counsel, who was later acquitted. The scandal involved stock-options backdating, or manipulating the paperwork for options awards so they look like they were awarded earlier than they actually were. The practice, which boosts recipients' potential windfall, led to investigations at hundreds of companies.


Updated : 2021-03-01 16:20 GMT+08:00