New CFO Scores at UTStarcom
UTStarcom executives say it was time to hire somebody with lots of experience, because running the company is becoming increasingly complex (see UTStarcom Reports Q2, Adds CFO). And it looks as if Barton will be richly rewarded for the task. According to a filing made with the Securities and Exchange Commission (SEC) today, Barton will get "an annual salary of $500,000, a signing bonus of $250,000, an annual bonus for the 2005 calendar year of up to $250,000" -- a total take of $1 million in his first year of work.
The new executive also gets an option to purchase 400,000 shares of common stock and "a share purchase right for the purchase of 100,000 shares of common stock," the filing states. Barton will take over the CFO job from Mike Sophie next month.
It's a pretty sweet upgrade. At his last job, in 2004, Barton made $376,147 with a $150,000 bonus. It even compares favorably to what the top UTStarcom executives have made. In 2004, Hong Lu, UTStarcom's president and CEO made $700,000 with no bonus, and outgoing CFO Mike Sophie made $400,000, according to UTStarcom's SEC filings.
In an unrelated move, UTStarcom disclosed this week that it still has about 440 employees left to cut as part of its restructuring, which will claim 1,400 jobs in all (see UTStarcom Unloads Q3 Warning).
— Phil Harvey, News Editor, Light Reading