Monday, May 14, 2012

The carrot$ that CSC offered Saleh to jump ship

Following is from a filing Computer Sciences Corp. made today with federal regulators, after announcing it hired Paul Saleh as its new chief financial officer -- a position he'd held at Gannett since November 2010.

Mr. Saleh will receive an annual base salary of $700,000 for the Company’s 2013 fiscal year, with a target annual cash incentive opportunity equal to 100% of his annual base salary. In addition, for each of the Company’s next three fiscal years (beginning with 2013, our current fiscal year), he will be granted an annual long-term equity incentive award with an approved value of 400% of his annual base salary, in each case with terms and conditions generally applicable to awards granted to other senior executive officers of the Company. Forty percent (40%) of each annual equity award will be delivered in stock options and the remaining 60% in performance-vested restricted stock units (or such other proportion as may be determined by the Compensation Committee of the Company’s Board of Directors from time to time). The number of shares subject to each annual long-term equity incentive award will be determined in accordance with the Company’s Equity Grant Policy.

Mr. Saleh will also be awarded a one-time inducement equity grant of 35,000 restricted stock units (“Inducement RSUs”), which will vest on the third anniversary of the grant date, subject to Mr. Saleh’s continued employment with the Company. The Inducement RSUs will automatically vest in the event Mr. Saleh is terminated without “cause” prior to the scheduled vesting date (as such term is defined in the Company’s Severance Plan for Senior Management and Key Employees) (“Severance Plan”).

Notes and context
My reading of that 35,000 RSU signing bonus is that it's potentially worth $945,000, based on CSC's closing stock price today of $26.59 a share.

Last year, GCI paid him a $600,000 salary; a cash bonus of $540,000, plus stock options with an estimated value of $981,250. Those options will be worthless, however, because he's leaving before they vest. Also, GCI paid him a $150,000 signing bonus when he started. (This 2011 compensation table has details.)


  1. Cha Ching!

    Moving on up to the East side, to that deluxe apartment in the sky.

  2. One smart guy, getting a well deserved big promotion.

  3. Someone should offer Martore a job. And Banikarim.


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