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Every time I read an article like this, they fail to mention an important factor: The equity payout occurs only if they hit certain milestones (typically stock

Every time I read an article like this, they fail to mention an important factor: The equity payout occurs only if they hit certain milestones (typically stock price hitting some value), and they expire if they don't hit that milestone. Take this: "Intel reported that its new CEO Pat Gelsinger earned $178.59 million in total compensation over an 11-month span from when he started in February 2021, until the end of the year." No he didn't. He didn't hit any of the stock goals since signing on as CEO, and the grants will likely expire before Intel's price hits those goals (I think the lowest target is in the 80 dollars). His actual compensation? About $10M - quite a bit of it being a sign on bonus. https://www.crn.com/news/components-peripherals/intel-ceo-pat-gelsinger-earned-179m-in-2021 https://www.crn.com/news/components-peripherals/intel-ceo-pa...

nequo 3y ago
Where does one learn about the milestones and the actual compensation?
- pottertheotter 3y ago
  Proxy statements. You can find them either on the investor relations website for the company, or the SEC website
- carimura 3y ago
  https://investors.broadcom.com/node/61851/html https://investors.broadcom.com/node/61851/html
- BeetleB 3y ago
  Annual proxy statement. Will have details on the compensation of leadership, and (usually) a scorecard for the past year.
carimura 3y ago
Ya and vested over 5 years. See the actual SEC filing copy: To retain and motivate Hock Tan, President and CEO, and Charlie Kawwas, President, Semiconductor Solutions Group, the independent members of the Board granted Mr. Tan and the Compensation Committee granted Dr. Kawwas performance stock unit (PSU) awards in fiscal 2023 that require (i) achievement of formidable stock price performance hurdles and (ii) continued service over a five-year vesting period. Mr. Tan’s fiscal 2023 PSU award was front-loaded to cover the market-based value of both his annual cash and long- term incentive opportunities over a period of five years. Dr. Kawwas’ fiscal 2023 PSU award was also front-loaded to cover the market-based value of his annual long-term incentive opportunities over a period of five years. The annualized GAAP value of these PSU awards was in line with our compensation peer group benchmarks. During the five-year vesting period, we do not intend to grant annual equity awards to Mr. Tan and Dr. Kawwas and Mr. Tan will not be eligible to receive annual cash incentive payouts because these PSU awards were front-loaded. These PSU awards are 100% at risk and deliver value to Mr. Tan and Dr. Kawwas only if our stockholders receive significant and sustained value appreciation. Additional disclosure on the methodology and design of these PSU awards is provided below in “Compensation Discussion and Analysis.”
itsoktocry 3y ago
>The equity payout occurs only if they hit certain milestones (typically stock price hitting some value), and they expire if they don't hit that milestone. Meanwhile, other people receive billions, their board gets sued for breach of fiduciary duty and people still think the CEO is deserving on HN.
lotsofpulp 3y ago
> Every time I read an article like this, they fail to mention an important factor: The writers or publishers are knowingly putting out clickbait / ragebait, and people eat it up, even on a forum such as this one filled with somewhat educated individuals.
- rayiner 3y ago
  Even educated people (perhaps, especially educated people) trust other professionals to do their jobs.
  - dctoedt 3y ago
    > Even educated people (perhaps, especially educated people) trust other professionals to do their jobs. That's a pretty sweeping generalization. As Ronald Reagan used to say (to the point of annoying Mikhail Gorbachev), the old Russian proverb is, trust, but verify. Or as they say in the nuclear Navy (and I hammer into my 3L students), you get what you INspect, not what you EXpect.

nequo 3y ago

Where does one learn about the milestones and the actual compensation?

pottertheotter 3y ago
Proxy statements. You can find them either on the investor relations website for the company, or the SEC website
carimura 3y ago
https://investors.broadcom.com/node/61851/html https://investors.broadcom.com/node/61851/html
BeetleB 3y ago
Annual proxy statement. Will have details on the compensation of leadership, and (usually) a scorecard for the past year.

carimura 3y ago

Ya and vested over 5 years. See the actual SEC filing copy: To retain and motivate Hock Tan, President and CEO, and Charlie Kawwas, President, Semiconductor Solutions Group, the independent members of the Board granted Mr. Tan and the Compensation Committee granted Dr. Kawwas performance stock unit (PSU) awards in fiscal 2023 that require (i) achievement of formidable stock price performance hurdles and (ii) continued service over a five-year vesting period. Mr. Tan’s fiscal 2023 PSU award was front-loaded to cover the market-based value of both his annual cash and long- term incentive opportunities over a period of five years. Dr. Kawwas’ fiscal 2023 PSU award was also front-loaded to cover the market-based value of his annual long-term incentive opportunities over a period of five years. The annualized GAAP value of these PSU awards was in line with our compensation peer group benchmarks. During the five-year vesting period, we do not intend to grant annual equity awards to Mr. Tan and Dr. Kawwas and Mr. Tan will not be eligible to receive annual cash incentive payouts because these PSU awards were front-loaded. These PSU awards are 100% at risk and deliver value to Mr. Tan and Dr. Kawwas only if our stockholders receive significant and sustained value appreciation. Additional disclosure on the methodology and design of these PSU awards is provided below in “Compensation Discussion and Analysis.”

itsoktocry 3y ago

>The equity payout occurs only if they hit certain milestones (typically stock price hitting some value), and they expire if they don't hit that milestone. Meanwhile, other people receive billions, their board gets sued for breach of fiduciary duty and people still think the CEO is deserving on HN.

lotsofpulp 3y ago

> Every time I read an article like this, they fail to mention an important factor: The writers or publishers are knowingly putting out clickbait / ragebait, and people eat it up, even on a forum such as this one filled with somewhat educated individuals.

rayiner 3y ago
Even educated people (perhaps, especially educated people) trust other professionals to do their jobs.
- dctoedt 3y ago
  > Even educated people (perhaps, especially educated people) trust other professionals to do their jobs. That's a pretty sweeping generalization. As Ronald Reagan used to say (to the point of annoying Mikhail Gorbachev), the old Russian proverb is, trust, but verify. Or as they say in the nuclear Navy (and I hammer into my 3L students), you get what you INspect, not what you EXpect.