New Sun CEO a millionaire--and then some
Jonathan Schwartz stands to get $3 million in cash per year and plenty of stock as Sun's new top executive.
- Shankland covered the tech industry for more than 25 years and was a science writer for five years before that. He has deep expertise in microprocessors, digital photography, computer hardware and software, internet standards, web technology, and more.
And that's just for starters.
Schwartz, 40, also has the possibility of a bonus of another $2 million; 2 million stock options that vest at the rate of 400,000 per year over five years; 800,000 restricted shares that will be granted if performance criteria are met; and 1.5 million restricted shares that he'll get upon staying for a year.
Also on his perk list is "private jet access for business and reasonable personal use" and coverage of personal security expenses. If he loses his CEO job, he'll be eligible to receive three times his salary, the filing said.
Schwartz, promoted from president and chief operating officer, also has new responsibilities as a new board member.
Schwartz replaced Chairman Scott McNealy as the leader of a company with a reputation as a computing industry visionary but one saddled by lackluster financial results. McNealy said he's been grooming Schwartz for years to take over as CEO and that the company now is poised for revenue growth.
Some investors have sharply disagreed with Sun's executive pay, objecting last year that "Sun's compensation system has the potential to reward mediocre performance."
McNealy also profited from the change. He'll get a $1 million salary starting July 1, with an option for a bonus of another $1.5 million; 2.1 million stock options vesting over five years; and 350,000 restricted shares awarded if performance criteria are met.