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Signing bonus: $5 million. Base salary: $800,000. Stock options: potential $40 million. Leaving the MSFT-YHOO island: priceless. … Not only does he get out of the vortex, Kevin Johnson’s being well compensated for last week’s surprise switch to CEO of Juniper Networks. The package detailed in an SEC filing — I read about it first on MercuryNews.com – includes:
— a $5 million signing bonus in three annual increments. That disappears in a puff of smoke if he leaves voluntarily or if Juniper boots him with cause.
— Relocation expenses with up to 12 months of housing, sale assistance, some closing cost reimbursement, etc.
— base salary of $800,000.
— 2008 target incentive: 150 percent of base salary on a prorated basis through the rest of 2008.
— a stock option for 1,400,000 shares vesting in stages and an additional grant of 200,000 with a different vesting schedule; performance share target of 335,000 shares that will be awarded if certain goals are met.
— And if he’s fired without cause, he gets a year of base salary and benefits plus relevant target bonus. He’d be much better off under with a change of control.
CNET: “Juniper’s stock is currently trading around $25 a share, giving his stock options grant a value of $40 million. The exercise price of Johnson’s stock options, however, will be based on the closing price of the day he receives the grant.”