Silicon Graphics details “discretionary” bonuses paid to some officers

Silicon Graphics filed details of the size of discretionary bonuses made to some of its executives that we previously wrote about. Chief Executive Robert Ewald was given control of doling out awards from a $3.44 million bonus pool to select employees. (Ewald himself got a $150,000 bonus awarded to him in late August.) The bonuses were awarded even though none of the company’s performance-based incentives were issued based on its results in fiscal 2008, which ended in June.

Douglas Britt, the company’s senior vice president for sales, received the biggest cash payment: $258,462. Chief Technology Officer Eng Lim Goh was given an extra $88,500.
Kathy Lanterman, the company’s chief financial officer, was given $56,500, as was Senior Vice President and Product General Manager David Parry. General Counsel Barry Weinert was paid $35,000.

In July, the company announced it had cut about 100 jobs, or 7 percent of its workforce over the previous month. And last SGI told the SEC it would be late in filing its annual 10-K report because it was taking longer than usual for the company’s auditing firm, KPMG, to complete its work. The form was eventually filed on Sept. 22.

Also on Wednesday, the company named McGladrey & Pullen its new auditing firm to replace KPMG, with whom it says it had no disagreements. SGI said the new firm firm would “Provide Shareholders with Optimal Mix of Cost and Quality.”

Shares of Silicon Graphics, which closed last week at $11.94, up more than 20 percent over the previous two weeks, have been slammed this week, falling more than 30 percent to $8.32 at the close Wednesday.

 

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