Now that I’ve spent eight months or so working in the IT business, I have a more nuanced understanding of executive compensation. For one thing, I now appreciate that top managers are being paid partly to bear the enormous pressure that comes with running companies with thousands of employees and stockholders, and annual revenues in the nine, 10, or 11 figures.
But it still doesn’t make it much less mind-boggling when you read something like this (which is completely commonplace). From a TBJ report today:
In a prepared statement, Calderoni called Red Hat “an exceptional company” and said it was “well positioned to continue to leverage the broad transformation that is occurring in the IT industry.”
Calderoni was CFO at Cisco before taking the role at Red Hat in June 2015. He received a $4 million signing bonus and $500,000 in moving expenses to take over from longstanding CFO Charlie Peters.
Including his signing bonus and stock awards, Calderoni secured a pro-rated $15.4 million in total compensation for fiscal 2016, according to Red Hat’s proxy statement. But securities filings show a caveat. If Calderoni resigns “without Good Reason” within two years of July 2015, he must repay a pro rata share of a $4 million bonus amount based on the number of days remaining in that period.
Red Hat CFO resigns, stock slides https://t.co/OPxsVm3hK1
— Social In Durham (@SocialInDurham) December 22, 2016