 | | What CAD/CAM Corporate Executives Earnexcerpted from
June 19, 2003 With the U.S. economy struggling, many manufacturing employees are facing salary cuts and potential layoffs. Likewise, CAD software companies have seen little or no growth during the past two years. Yet as sales and earnings remain flat or fall, many company executives aren’t sharing the pain equally. During the stock-market bubble of the 90s, the best executive was considered to be one who could boost a company’s share price the most. Shareholders didn’t really care how this was accomplished. Granting hundreds of thousands of stock options to executives as compensation exacerbated the trend. In the ballooning stock market, these options gave the executives an incentive to exaggerate how well their companies were doing in order to cash in as share prices rose. As all this unfolded, executives’ salaries came to have little relation to whether or not a company was actually growing or making money. With the stock-market collapse, however, companies are once again facing the realities of profit and loss, and corporate executives should be focusing on keeping their companies healthy and productive. Given this new reality, what are CAD/CAM executives making, and are they earning it? MCAD executive payIn fiscal 2003, which ended January 2003, Autodesk had revenues $122 million below those it posted in 2002 and $23 million below 2000. Its net income for fiscal 2003 was down by almost half from the year before. During this disappointing year, chairman and chief executive Carol Bartz, still earned a hefty $756,000 in salary but did not receive any bonus. In 2002, she got a bonus of $550,000, and in 2001 her bonus totaled $900,000. Likewise, Autodesk’s other top executives also went without bonuses in fiscal 2002. By contrast, PTC, which saw its revenues fall from $1.06 billion in 1999 to $742 million in fiscal 2002, paid its chief executive, C. Richard Harrison, a salary in 2002 of $400,000 plus a $455,000 bonus. Other PTC executives also received bonuses ranging from $183,000 to $212,000. | What do MCAD company executives make? | | Company | Executive | Title | Salary | Bonus | Other | Total | | Autodesk | Carol Bartz | Chairman/CEO/
President | $765,000 | | $34,811 | $799,811 | | Joseph H. Astroth | Executive VP-
Location Services | $304,000 | | $13,114 | $317,114 | | Carl Bass | Executive VP-
Design Solutions | $380,000 | | $15,322 | $395,322 | | Michael E. Sutton | Executive VP-
Business Operations | $358,077 | | $112,700 | $470,777 | | Tom Vadnais | Executive VP-
Autodesk Profession Services | $304,000 | | $4,016 | $308,016 | | Dassault Systèmes | Charles Edelstenne | Chairman | $591,715
(€ 502,518) |
| $14,360
(€ 12,196) | $606,075 | | Bernard Charlès | President/
CEO | $956,000
(€ 726,021) | | $5,486
(€ 4,646) | $961,486 | | Thibault de Tersant | Executive VP/
CFO | $294,018
(€ 229,143) | | $3,177
(€ 2,682) | $297,195 | | PTC | C. Richard Harrison | CEO/
President | $400,000 | $455,000 | $5,750 | $860,750 | | Barry F. Cohen | Executive VP-
Strategic Services | $275,000 | $211,250 | $1,308 | $487,558 | | James E. Heppleman | Executive VP-
Software Products | $347,000 | $211,250 | $5,750 | $564,000 |
The compensation figures do not include stock options. What ECAD executivesIn the ECAD world, Cadence, whose sales in the past year dropped by $140 million as its net income dropped by $69 million, paid its president and chief executive H. Raymond Bingham a salary of $850,032 and a bonus of $847,505. Bingham’s bonus a year ago, however, was a whopping $1.47 million. Synopsys, whose revenues reached record levels in 2002 but whose profits plunged as a result of a legal settlement with Cadence, paid chief executive Aart de Geus a salary of $446,154 in 2002 and a bonus of $575,000. Mentor Graphics with flat revenues since 2000 and a 2002 annual loss of $14 million, paid chief executive Walden Rhines a salary of $550,000 in 2002 but no bonus. Last year, Rhines earned a bonus of $174,000, and the year before that, $1.7 million. | What do ECAD company executives make? | | Company | Executive | Title | Salary | Bonus | Other | Total | | Ansoft | Nicholas Csendes | President/
CEO | $233,333 | $4,000 | | $237,333 | | Zoltan J. Cendes | Chairman/
CTO | $233,333 | $4,000 | | $237,333 | | Thomas A.N. Miller | Executive VP | $120,000 | $91,733 |
| $211,733 | | Cadence | H. Raymond Bingham | President/
CEO | $850,032 | $847,515 | $6,000 | $1,703,547 | | Kevin Bushby | Executive VP-Worldwide Field Operations | $460,621 | $445,401 | $115,895 | $1,021,917 | | Lavi A. Lev | Executive VP-
IC Solutions | $350,013 | $236,977 | $250,000 | $836,990 | | R.L. Smith McKeithen | Senior VP-
General Counsel | $350,013 | $277,532 | $6,000 | $633,545 | | William Porter | Senior VP-
CFO | $400,015 | $190,831 | $6,000 | $596,846 | | Magma | Rajeev Madhavan | CEO/
Secretary | $225,000 | $150,000 | $23,261 | $398,261 | | Roy E. Jewell | COO/
President | $240,000 | $143,250 | $550,163 | $933,413 | | Robert A. Sheffield | VP-Finance/
CFO | $200,000 | $130,000 | $14,455 | $344,455 | | Mentor Graphics | Walden C. Rhines | Chairman/
CEO | $550,000 | | $5,500 | $555,500 | | Gregory K. Hinkley | President | $425,000 |
| $5,500 | $430,500 | | Walter H. Potts | VP/Genl Manager-
Systems Design | $315,090 | | $5,500 | $320,590 | | L. Don Maulsby | Senior VP-
World Trade | $275,080 | | $6,000 | $281,080 | | Jue-Hsien Chern | VP/General Manager-
Deep Submicron | $245,080 | | $5,500 | $250,580 | | Anne M. Sanquini | VP/General Manager-
HDL Design | $268,466 | | $5,500 | $273,966 | | Synopsys | Aart J. de Geus | Chairman/
CEO | $446,154 | $575,000 | $1,500 | $1,022,654 | | Chi-Foon Chan | President/
COO | $400,000 | $575,000 | $1,855 | $976,855 | | Vicki L. Andrews | Senior. VP-
Worldwide Sales | $300,000 | $448,385 | $13,884 | $762,269 | | Steven K. Shevick | Sr. VP/
CFO | $250,000 | $220,000 | $1,500 | $471,500 |
The compensation figures do not include stock options. Rapid prototypingCompared with the mechanical and electronic CAD worlds, some rapid prototyping executives make little. Stratasys president Scott Crump took home only $230,000 in salary and bonus, even though his company had record earnings and profits in 2002. In contrast, 3D Systems paid dearly for its top executives. From 1999 through September 2002, 3D hired the management services of its top executives from Regent Pacific. According to the terms of the contract, Regent provided the services of a team of up to three full-time executives, including chief executive Brian Service, for $45,000 per week ($2.34 million per year). In September of 2002, 3D ended its agreement with Regent Pacific and hired Service directly. During the first two years of Regent Pacific’s reign, sales grew briskly, and the company completed what appeared to be a strategically sound merger with rival DTM. After that, 3D’s fortunes deteriorated rapidly. The company is currently several months late filing its 10-K with the Securities and Exchange Commission for 2002, and it hasn’t reported what it made in 2002 or what its executives were paid. During 2002, 3D laid off more than 20 percent of its work force, and its stock price has fallen from $14 per share to about $7 today. | What do rapid prototyping company executives make? | | Company | Executive | Title | Salary | Bonus | Other | Total | | 3D Systems | late in reporting | | Stratasys | Scott Crump | President/
CEO/Treasurer | $148,720 | $79,500 | $2,025 | $230,245 | | Thomas W. Stenoien | Executive VP/
CFO | $103,194 | $82,900 | $2,211 | $188,305 |
The compensation figures do not include stock options. Read more... - PDM software companies
- Effects of options
- Worth the money?
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