August 4, 2005 4:32 PM PDT

Sun chiefs collect bonuses despite missed targets

Sun Microsystems Chief Scott McNealy and four other top officers of the company will collect generous bonuses this year even though the computer server company has not met all its performance targets, according to a regulatory filing. Sun's board and top management approved McNealy's $1.1 million bonus last week, after the company reported an 85 percent decline in fourth-quarter net income and said it would slash 1,000 jobs--about 3 percent of its work force.

The board approved a $280,000 bonus for Sun President Jonathan Schwartz and rewards of more than $150,000 for the heads of finance, human resources and technology "in recognition of progress made during the past fiscal year and for employee retention purposes," the company said in its filing. The board also approved a plan to reduce Sun's leased office space at a cost of about $180 million over the next several quarters, according to the filing.

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Shameful
This is simply UNBELIEVABLE. After yet another year of lackluster performance coupled with elementary school level acquisition decisions the Board approves $1.1M for McNealy? Is this some type of sick joke? What a monumental waste of Sun's quickly eroding resources. "Planet Earth calling the Sun Board ... hold McNealy accountable for his results." He lacks the vision and leadership ability to bring Sun out of its spiral. Stop living in the past and wake up. This is shameful. If McNealy wants to show real leadership he should not accept the bonus and show his people that he holds himself to the same level of accountability to which he holds his employees.
Posted by James_U (69 comments )
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Sweet!!! How do I get a similar deal?
Non-performance = bonus.
Missed targets = bonus.
Kills hundreds = bonus.
Fires 100% of employees = bonus.
"Works" 1 day per year = bonus.

Please outsource the executive suite before this country implodes.
Posted by ordaj (314 comments )
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Doh!
That was to be expected, reward the inept and the incompetent and sack the workers but perhaps lemming like Sun Board should hire Carly F(ex HP backwards compatable CEO), so she she can bulk email the last remaining Sun employees with pink emails, as the sun rapidly sets on the horizon!
Posted by heystoopid (691 comments )
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