Palm CEO's Salary Increased but Bonuses Decreased

Posted By: Ed Wednesday, September 5, 2001 3:35:07 PM

In their fiscal year that ended in May, Palm's CEO Carl Yankowski had a salary of $666.7 thousand and bonuses equalling $249 thousand for a total of $915.6 thousand. In the previous year, his salary was $281.8 thousand and he received a bonus of $430 thousand for a total of $711.8 thousand.

It should be emphasized that this isn't Mr. Yankowski's current salary, but the one for Palm's last fiscal year and the 137% salary increase came at a time well before Palm's current financial troubles began.

While Palm's downturn had no effect on his base salary, it did strongly affect his bonuses. The $249 thousand bonuses came in the first and second quarters of Palm's financial year. In the second half of the year, once the economic downturn hit Palm, no Palm executives received any bonuses.

He also received stock options that are currently worthless but have the potential to be worth millions of Palm's stock increases substantially.

Palm hasn't revealed what Mr. Yankowski's current salary is.

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Witholding judgement....

slot_machine @ 9/5/2001 3:53:28 PM #
His moves over the last few months (Be, splitting the OS off) are slowly increasing my confidence level.

RE: Witholding judgement....
I.M. Anonymous @ 9/5/2001 4:17:40 PM #
$666 Thousand? What a punk

RE: Witholding judgement....
AriB @ 9/6/2001 5:17:43 AM #
getting Be was a pretty gutsy move IMHO. Here was a company completely underappreciated by the industry but Yankowski managed to see past that and just focused on their technology.

666K?? Isn't that the "Sign of the Devil"???
I.M. Anonymous @ 9/6/2001 8:45:26 PM #
.

I would imagine...

EGarrido @ 9/5/2001 4:16:35 PM #
I would have imagined that his salary was much bigger than that, considering Palm is the leading handheld device maker in the market.

Just interesting.

Eric Garrido

RE: I would imagine...
I.M. Anonymous @ 9/5/2001 7:32:06 PM #
I would of thought he would be collecting un-employment by now seeing how his "bright" ideas has cost Palm it's finacial savings.

Just keep in mind that Palm is the number one PDA for many reasons..many which go far beyond anything Carl Yankowski has ever contributed to Palm. All that talent left and formed Handspring, goes to their licensees, and to 3com for being the first major PDA that was marketed successfully giving Palm as we know it today it's every legendary status and name. Pam has done virtually nothing to their PDA's in the last several years.. and only has been lately with the pwerful PPCs and other Palm licensees, like Sony, handspring, Handera, and others that pushe Palmed and kicked Carol in behind to lift a finger and do something.

At least we know where some of DR money is going too...Isn't that right Carol?

RE: I would imagine...
I.M. Anonymous @ 9/5/2001 7:55:02 PM #
You can bet his take home is a hell of a lot more than 3/4 mill. He's probably got stock options out the wazoo, that let him buy hundreds of thousands of shares for pennies on the dollar. His salary, as with most CEOs these days, is the smallest part of his compensation. There are big tax benefits to having stock options and deferred compensation arrangements. Not that any of this really matters, but I just thought I'd chime in to let you know that this bit of news is even less informative than you think.

RE: I would imagine...
Ed @ 9/5/2001 9:23:20 PM #
> He's probably got stock options out the wazoo, that let him buy hundreds
> of thousands of shares for pennies on the dollar.

That is incorrect. Mr. Yankowski has options to buy 1 million shares. Half of the options can be exercised for $7.70 apiece, while the other half have an exercise price of $29.44 a share.

Considering Palm's stock closed today at $3.50, the company will need a major turn around before these are worth anything.

This was mentioned in the fourth paragraph but I didn't want to bore you with the details.

---
News Editor

If I sat on the board

drw @ 9/5/2001 7:58:01 PM #
100% of his salary would be stock options.

David in Pflugerville, TX

Yeah right

I.M. Anonymous @ 9/5/2001 8:30:06 PM #
He's a dimwit...the worst thing that could have happened to Palm. Its good that he had to split the company? More like desperate...

Mc Donald coupons

I.M. Anonymous @ 9/5/2001 8:57:04 PM #
exactly a year form now his stock option will worth exactly 2 big meal coupons in McDonalds if he does not pull an insanely great product out of the hat.

RE: Mc Donald coupons
I.M. Anonymous @ 9/5/2001 10:35:55 PM #
()
(.)(.)


I think the PALM Stockholders are all getting screwed!!!

I.M. Anonymous @ 9/5/2001 8:57:36 PM #
That's right - the Palm stockholders are all being royally screwed over by these BUREAUCRATS with their steak luncheons, their hunting and fishing trips, their corporate jets and golden parachutes! Palm has 20+ different Chiefs and Vice Presidents, EACH earning over 500 thousand dollars a year. Now, I have spent the last two months analyzing what all these guys do and I still can't figure it out! One thing I do know is that the company lost 154 million dollars last quarter and I'll bet that half of that was spent in all the paperwork going back and forth between all these Chiefs and Vice Presidents!!! The new law of evolution in corporate America seems to be Survival of the Unfittest. Well, in my book, you either do it right or you get eliminated. -GG



RE: I think the PALM Stockholders are all getting screwed!!!
I.M. Anonymous @ 9/5/2001 9:22:44 PM #
I too was going to verbally beat up on that fat B--tard for screwing me out of lots of money on the stock I bought;
nevertheless, I do want Palm Os to "live well and Prosper". I just don't understand how others are not as enthusiastic as a legion of many who use THE machine.

RE: I think the PALM Stockholders are all getting screwed!!!
I.M. Anonymous @ 9/6/2001 4:02:15 AM #
>The new law of evolution in corporate America
> seems to be Survival of the Unfittest.

I agree with this - the overhead costs will kill the company.
If you have had, I did a chance to meet the "leaders” you are ready for a surprise.

I explicitly exclude Carl Jankowsky, and Mike Mace.
There really bright and probably widely underestimated and therefore much underpaid staff – but the rest of the Palm Zen top & middle management kingdom you can forget.
They’re taking basically a free lunch – on the stockholders money.

Conclusion is – the CO must get rid of the free ride fatties and clean out the company - fast.

RE: I think the PALM Stockholders are all getting screwed!!!
AriB @ 9/6/2001 5:14:43 AM #
hehe watch what is happening right now with HP and Compaq. Many people agree that the proposed merger is crazy and I'm pretty sure that either Jornada or iPaq will have to go

RE: I think the PALM Stockholders are all getting screwed!!!
Trevethan @ 9/6/2001 7:09:49 AM #
I-Nada doesn't really have a great ring about it does it? But sums up nicely what Pocket PC has to offer.. *grin*

and H-paq sounds like some great new haemorrhoid treatment...


Nick Trevethan

Devon
UK

DELL crushed HP, Compaq, Gateway, Apple, Micron, IBM, etc.
I.M. Anonymous @ 9/6/2001 8:34:35 AM #
Dell forced HP and Compaq into this desperate merger, not Palm. Dell is the only one profitable in PC's. Dell's direct model and smart management create an efficient yet profitable price structure with quality products which no PC maker can compete with. Now DELL is in the process of taking out SUN in high end servers and EMC in storage. If Dell though making Handhelds was profitable, they would do it. BUT the reality is that there is not a lot of fat in Handheld devices - so why bother. Bottom line is - DELL's management is world class - they know how to execute. Contrast that with the shmoes at Palm. Sure, Palm has a bunch of "nice guys" - but nice guys don't feed the bulldog!

RE: I think the PALM Stockholders are all getting screwed!!!
I.M. Anonymous @ 9/6/2001 9:43:14 AM #
yeah right...anybody remember how Dell entered laptop business first time? have a good chuckle. And remember Dell reports lost last quarter.

Dell?
I.M. Anonymous @ 9/6/2001 10:03:01 AM #
Dell? You mean the ones who can't build a PC that doesn't have shielding on its ports or motherboards so that any tiny shock can fry the whole thing? And who then refuse to fix them under warranty when people call to complain. And then go beyond even that to tell callers that Palms are known to destroy computers and that they should sue Palm to get the computer fixed?

Yeah, really great quality, real great service. They are liars through and through and Palm needs to sue them to make them stop lying.

uh...Don't let the facts get in your way:
I.M. Anonymous @ 9/6/2001 3:58:54 PM #
1. Dell is by far #1 in notebook sales (as well as #1 in server units and workstations AND PC's).
2. Dell made no comment about Palms frying motherboards. RFA - that lawsuit was brought by a few Palm users.

RE: I think the PALM Stockholders are all getting screwed!!!
AriB @ 9/6/2001 11:46:28 PM #
if Dell -were- to come up with a handheld I wouldn't be too surprised if it was based on PalmOS 5. My guess is based on the fact that Dell and Palm made deals together before.

Bonues Decreased?

I.M. Anonymous @ 9/6/2001 10:06:51 AM #
"Palm CEO's Salary Increased but Bonues Decreased"

What's a Bonue ? ;-)

RE: Bonues Decreased?
mikecane @ 9/6/2001 10:18:32 AM #
Thanks for pointing that out! I was just about to, too. Hey, Ed -- TYPO!

RE: Bonues Decreased?
I.M. Anonymous @ 9/6/2001 10:21:25 AM #
I's one of those paper thingy...currently worth about $3 bucks and some change but if you hold up little longer you can have a nice collection of penny stock.

Where is the Meat?

I.M. Anonymous @ 9/6/2001 10:23:06 AM #
Man... that Carl guy better hurry up, Merlin upgrade is already out and hit store by october, and then more introduction around Jan/Feb with the Talisker base. When is Palm going to introduce new machines? I mean something really new not just repackage Vx or m100.

H-P-Compaq merger, Pocket PC upgrade weigh on Palm

I.M. Anonymous @ 9/6/2001 5:31:52 PM #
Yikes! Palm at $2.99/Share! Handspring at $2.27/Share. PALM vs. HAND: Race to ZERO?

http://news.moneycentral.msn.com/ticker/article.asp?Feed=RTR&Date=20010906&ID=1047767&Symbol=US:MSFT

Please don't post the entire text of articles as comments. Its a violation of their copyright. Links are good enough. Thanks. -Ed


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