For BEA boss, fiscal 2007 was a very good year

BEA Systems finally got around to filing its proxy statement covering the fiscal year that
ended more than a year ago on Jan. 31, 2007. It turned out to be a very good year for
co-founder and chief executive Alfred Chuang, even though BEA shares ended that year still down 30 percent from where they were five years before.

In addition to his $862,500 salary Chuang was given two bonuses: one for his work in fiscal 2007 totaled $929,543, and a second “”discretionary bonus” for his efforts in fiscal 2006 of $200,000. (Note: that would be in addition to the $750,000 bonus the board had already given Chuang for his fiscal 2006 efforts.) Oh, and Chuang also made another $6 million exercising options in fiscal 2007.

Chuang also got various other goodies, including the use of a company car and driver worth $188,853, matching 401(k) contributions of $3,000 (Geez, what’s the match?), personal financial planning and tax preparation services worth $15,545 plus $6,955 to pay for the taxes on it, “miscellaneous other compensation of $5,910,” plus $6,800 for  “donations.” (Um, couldn’t he afford to make his OWN donations?)

Total on the above: $8.2 million. But wait, there’s more.

Chuang was also given a stock award for 233,000 shares that were worth $3 million when granted, but whose value has risen to $4.5 million given Oracle’s pending purchase of BEA Systems for $19.38 per share. And an option grant covering 700,000 shares with a strike price of $12.93 will net Chuang another $4.5 million when the deal with Oracle is done.

As of a year ago, Chuang also controlled options covering 5.67 million shares that will bring him $63.6 million when the sale goes through. That should help salve any wounds he feels once Larry Ellison becomes his boss. It will also help take the sting out of the $2.45 million Chuang agreed to repay BEA last year to cover the amount of improper gain he received exercising and selling shares from three mis-priced option grants in 1998 and 1999.

BEA Systems will be filing another proxy before much longer in preparation for a shareholder vote to approve the Oracle buy-out. We look forward to seeing what kind of compensation arrangements were made for Chuang during BEA’s final fiscal year just ended.  Could his parachute get any more golden?


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