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CIOs rake in the big bucks

Ann Bednarz | Oct. 10, 2013
Familiar companies pay CIOs bonuses, stock awards, and executive perks along with healthy salaries

Planning for the future: equity rewards
Long-term incentives — stock options, restricted stock, performance shares — typically vest over time but are calculated according to their value on the grant date. In our roundup, the biggest equity awards went to:

HP's Hinshaw, who was granted stock awards and option awards valued at $5.1 million; SunTrust Banks CIO and corporate EVP Anil Cheriyan, who received equity awards valued at $2.9 million; Meg McCarthy, EVP of operations and technology at Aetna, who received stock awards valued at $2.8 million; Procter & Gamble's Passerini, whose equity awards were valued at $2.7 million; and Home Depot's Carey, who received equity awards valued at $2 million.

Raises and pay cuts
Some tech leaders netted big raises last year. Allstate's Gupta landed a 22% raise, which brought his pay package to $3.5 million. A 20% raise took Procter & Gamble's Passerini up to $5 million. WellPoint's Beer received an 18% raise, which increased her pay package to $3.2 million.

Other CIOs saw their pay slashed in 2012.

Richard Chapman's $1.2 million pay package is down 31% from 2011, when he earned $1.7 million as Kindred Healthcare's chief administrative and information officer. FedEx's Carter saw his compensation drop 18% to $4.8 million, compared to $5.8 million a year earlier. Don Imholz, CIO at healthcare service provider Centene, took a 16% pay cut, which brought his compensation down to $1.5 million.

Welcome to the company
A few newcomers were rewarded with sign-on bonuses. Ron Griffin, CIO and SVP at AutoZone, received a $75,000 sign-on bonus. Allstate's Gupta earned a $400,000 signing bonus, and a $1.5 million signing bonus went to HP's Hinshaw.

Planes, cars, and tax help  
Executive perks varied significantly, with some CIOs enjoying private jets and car allowances and other CIOs receiving little or no compensation extras.

At the high end, HP's Hinshaw racked up $375,990 in perks and other compensation. Specifically, he received $124,300 for home security services, $120,326 for relocation expenses, a $54,468 tax gross-up, $50,380 for personal aircraft usage, $10,000 for a 401(k) company match, and $16,516 in miscellaneous extras.

Aetna's McCarthy received $212,232 in perks and other compensation. The bulk of her perks ($196,551) were for personal use of company aircraft.

Hinshaw isn't the only tech exec to receive a tax gross-up, an unpopular perk with investors (a tax gross-up is an extra payment that's intended to cover an individual's personal tax liability due to another given perquisite, such as air travel).

Allstate's Gupta was reimbursed $48,132 for an income tax bill related to his relocation expenses.

Likewise, Juanell Hefner, SVP of customer and technology services at Health Net, received $62,854 for relocation costs plus a $47,277 tax gross-up payment to reimburse her for the income tax liability associated with the relocation benefit. (Hefner also received a $12,000 automobile allowance and $5,000 for financial counseling).

 

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