Adobe shareholders sign-off on exec raises, with CEO Shantanu Narayen winning a plush $7m pay rise
(2021/04/22)
- Reference: 1619110811
- News link: https://www.theregister.co.uk/2021/04/22/adobe_exec_raises/
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Adobe shareholders have approved an executive compensation package that handed CEO Shantanu Narayen a $7m pay bump during fiscal 2020, [1]according to SEC documents .
The non-binding (and retrospective) vote was necessitated by the 2010 Dodd-Frank Act, which reformed financial regulation on a federal level, and required publicly traded companies to permit shareholders to periodically vote on executive compensation levels.
[2]
In total, Narayen earned $45.9m in 2020, up from $39.1m the previous year. Although the exec's base pay remained unchanged at $1m, he nonetheless enjoyed significant bumps on the amount of stock awarded as well as in performance-based cash bonuses.
Other perks of the job, including use of the company's Gulfstream G550 jet for personal use and an executive health concierge service, were valued at $213k, up from $170k the previous year.
[3]
According to the company's statement, Narayen's compensation was 281 times that of the median employee, at $153,916.
IBM's CEO and outgoing exec chairman take home $38m in total for 2020 despite revenue shrinking by billions [4]READ MORE
Other execs enjoying a pay hike included CFO John Murphy, who saw his total package swell to $9.9m from $7.5m; Creative Cloud EVP and chief product officer Scott Belsky, who made $9.8m, up from $7.4m the previous year; and Document Cloud EVP and CTO Abhay Parasnis, who was given a cool $9.9m up from $7.4m.
In each case, the vast bulk of the payouts came from performance-measured equity awards and cash bonuses. Adobe noted that 97.2 per cent of the CEO's payout is contingent on the company's performance, with 91.5 per cent for other executive officers.
[5]
Adobe reported a bumper [6]FY2020 ended 27 November , with revenue growing 15 per cent year-on-year to $12.87bn on the back of growing demand for its Document Cloud and Creative Cloud business units. These earned $7.7bn and $1.5bn respectively. It banked $5.2bn in profit versus $2.95bn in the prior year. ®
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[1] https://www.sec.gov/Archives/edgar/data/796343/000079634321000056/adbeproxy2021.htm
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YIHx@LD5G0bn@tp27-wifQAAAJQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YIHx@LD5G0bn@tp27-wifQAAAJQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[4] https://www.theregister.com/2021/03/17/ibm_exec_payouts/
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YIHx@LD5G0bn@tp27-wifQAAAJQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.adobe.com/content/dam/cc/en/investor-relations/pdfs/01210202/a7b36fmf92v6f.pdf
[7] https://whitepapers.theregister.com/
The non-binding (and retrospective) vote was necessitated by the 2010 Dodd-Frank Act, which reformed financial regulation on a federal level, and required publicly traded companies to permit shareholders to periodically vote on executive compensation levels.
[2]
In total, Narayen earned $45.9m in 2020, up from $39.1m the previous year. Although the exec's base pay remained unchanged at $1m, he nonetheless enjoyed significant bumps on the amount of stock awarded as well as in performance-based cash bonuses.
Other perks of the job, including use of the company's Gulfstream G550 jet for personal use and an executive health concierge service, were valued at $213k, up from $170k the previous year.
[3]
According to the company's statement, Narayen's compensation was 281 times that of the median employee, at $153,916.
IBM's CEO and outgoing exec chairman take home $38m in total for 2020 despite revenue shrinking by billions [4]READ MORE
Other execs enjoying a pay hike included CFO John Murphy, who saw his total package swell to $9.9m from $7.5m; Creative Cloud EVP and chief product officer Scott Belsky, who made $9.8m, up from $7.4m the previous year; and Document Cloud EVP and CTO Abhay Parasnis, who was given a cool $9.9m up from $7.4m.
In each case, the vast bulk of the payouts came from performance-measured equity awards and cash bonuses. Adobe noted that 97.2 per cent of the CEO's payout is contingent on the company's performance, with 91.5 per cent for other executive officers.
[5]
Adobe reported a bumper [6]FY2020 ended 27 November , with revenue growing 15 per cent year-on-year to $12.87bn on the back of growing demand for its Document Cloud and Creative Cloud business units. These earned $7.7bn and $1.5bn respectively. It banked $5.2bn in profit versus $2.95bn in the prior year. ®
Get our [7]Tech Resources
[1] https://www.sec.gov/Archives/edgar/data/796343/000079634321000056/adbeproxy2021.htm
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YIHx@LD5G0bn@tp27-wifQAAAJQ&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YIHx@LD5G0bn@tp27-wifQAAAJQ&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[4] https://www.theregister.com/2021/03/17/ibm_exec_payouts/
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/saas&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YIHx@LD5G0bn@tp27-wifQAAAJQ&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.adobe.com/content/dam/cc/en/investor-relations/pdfs/01210202/a7b36fmf92v6f.pdf
[7] https://whitepapers.theregister.com/
Working 281 times harder than most employees?
" ... Narayen's compensation was 281 times that of the median employee... "
But in fact he's just making most employees work 281 times harder than he does. If you're an Adobe user and have a problem will he help? You're told to search the Internet for answers, so you need to do the work yourself ... that will give him a little ($7m) more next year.