EMC reveals bonus payments
EMC reveals bonus payments
A proxy statement released by EMC last week reveals that Joseph Tucci, the CEO at EMC was paid US$1.675 in salary and bonuses last year and was granted two million shares in stock options.
In January Mr Tucci received 75,000 shares or stock at 1 cents per share, the proxy statement said that Mr Tucci did not receive half of his target bonus because the company failed to reach profit goals.
EMC has always been criticised for the close relationship the company founder and the board of directors have. The board is staffed by a number of founder and former chairman Dick Egan's relatives. The proxy statement revealed that the Thomas A Fitzgerald insurance company had been retained as their insurance brokers. Reuters reported that Thomas Fitzgerald is the bother of Paul Fitzgerald, who is in turn Dick Egan's brother in law and the uncle of Dick's son John Egan, who sits on the board.
A real estate payment was also made to Carruth Capital to the value of $2.2 million. John Egan is a shareholder in Carruth Capital.
In another interesting deal, EMC paid out $75,000 to Centerstone Software for related licences which were installed in 1998. John Egan is a director and shareholder in Centerstone.
In the proxy statement EMC said that the terms of these deals are fair and in no way less favourable to EMC than they could have obtained from unaffiliated companies.
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