Wang raises CEO's salary
Despite a falling stock price, Wang Laboratories plans to raise the compensation package of its chairman and chief executive Joseph M. Tucci.
The company also announced the formation of the office of the president, which will be headed up by two executives who will report to Tucci.
Jose Ofman, who previously served as a vice president and group executive at Electronic Data Systems, will join Wang as president and chief operating officer of the Americas.
Mias van Vuuren, former Wang international operations president, will become chief operating officer of international.
"Our new management structure aligns our core businesses worldwide, reinforcing Wang's ability to take advantage of the growing markets at home and abroad," Tucci said in a statement.
Wang's board of directors approved a 24 percent raise in Tucci's base salary, raising it to $750,000 from $605,000.
And he will receive a retention bonus of $4 million, contingent upon his continuing employment with the company.
Tucci will also receive an increase in long-term incentives in restricted stock awards and option grants, which is designed to align a larger portion of his future compensation upon shareholder value.
Wang has seen its stock fall 24 percent since January 31, when it closed at 23-1/4. The stock finished yesterday at 17-9/16, down 11/16.
The global desktop and network integration and services company has a 52-week high of 26-1/8 and a low of 15-3/8.
Tucci's compensation package was prompted by Wang's directors desire to place Tucci's compensation in line with other CEOs, recognize his leadership role at the company, and tie it closer to shareholder value, the company said.
Wang, which emerged from a reorganization bankruptcy in 1993, has refocused. Wang recently acquired I-NET, which serves as an outsourcing and systems integration arm. Earlier this month, the company completed its $260 million sale of its software business to Eastman Kodak.
The company has posted two consecutive years of losses, but its revenues have nearly doubled during this time period.