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New Juniper CEO Can Be Thankful for $14.5M

Mitch Wagner
11/25/2014
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Juniper's directors recently voted to pay new CEO Rami Rahim up to $14.5 million, including performance incentives, after naming him to the top job following the abrupt, under-a-cloud resignation of his predecessor.

Rahim, a 17-year Juniper vet, gets $1 million base salary subject to annual review. He'll be eligible to participate in Juniper Networks Inc. (NYSE: JNPR)'s Executive Annual Bonus Plan for executive officers, with an annualized bonus target of 175% of base salary, for an additional $1.75 million. However, in 2014, the incentive will be based on 10 months with an annualized bonus target of 150% of base salary and two months at 175%, according to a Juniper SEC filing Monday.

Rahim also gets $5 million in shares at their November 1 value, vesting through 2019, with an additional $6.75 million equity awards in 2015.


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Finally, he can collect up to $10,000 of expenses, subject to approval. That'll buy a lot of little bags of M&Ms, even at the ridiculous prices they charge in the hotel room minibar.

Rahim's predecessor, Shaygan Kheradpir, who lasted about a year on the job, was eligible for up to $34.8 million, although he almost certainly didn't collect most of that, since quite a lot of it was performance incentives -- for example, $15 million was an incentive for stock price improvement, according to a Juniper SEC filing

Kheradpir resigned early this month following a "review by the board of directors of his leadership and his conduct in connection with a particular negotiation with a customer." Kheradpir kicked off his less than one year in the hot seat with a revolt by activist investors, strategy review, job cuts, executive defections and a service provider capex crunch.

— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to [email protected]

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DHagar
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DHagar,
User Rank: Light Sabre
12/1/2014 | 1:06:35 PM
Re: Third Base
SachinEE, exactly.  He has definitely put himself in the spotlight - so it will be all (fix things) or nothing.
DHagar
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DHagar,
User Rank: Light Sabre
12/1/2014 | 1:02:27 PM
Re: Third Base
MikeP688, good research.  Yes, if he succeeds, he will have earned it!
SachinEE
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SachinEE,
User Rank: Light Sabre
11/27/2014 | 2:27:09 AM
Re: jeez, what a story
@mitch, shareholders and investors cannot pressurize the management to select a CEO who would cover their past mistakes (and the past mistakes of the ex-CEO)and at the same time take the company to successful case studies.
SachinEE
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SachinEE,
User Rank: Light Sabre
11/27/2014 | 2:24:52 AM
Re: Third base
If things are not in order for the next thanksgiving then he would be having a lot of questions waiting for him in exchange for the amount that has been charged by him.
MikeP688
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MikeP688,
User Rank: Light Sabre
11/27/2014 | 2:24:17 AM
Re: Third base
We should always celebrate success--and I for one wish him well.     I just checked on Juniper's latest stock price and the new CEO does have his work cut out for him: 
JNPR
Juniper Networks Inc. (NYSE)
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It is also interesting how this MarketWatch Column was not too kind to Juniper...Will they overcome? 
DHagar
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DHagar,
User Rank: Light Sabre
11/26/2014 | 8:19:01 PM
Re: Third base
mendyk, there certainly does not appear to be any clear rationale, other than maybe tying the rate to the inflation rate of M&M's!  Realistically, they are just going after "clean up the mess" and hoping that they can put things back together again.

The new CEO has a lot to be thankful for this Thanksgiving; whether or not he can deliver and things be in order for next Thanksgiving is another story.
Steve Saunders
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Steve Saunders,
User Rank: Blogger
11/26/2014 | 1:05:16 PM
Re: jeez, what a story
for half the money 
nasimson
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nasimson,
User Rank: Light Sabre
11/25/2014 | 9:08:45 PM
case study
Where is Rami Rahim coming from? He is taking a very hot seat with lots of expectations from employees & shareholders. If he succeeds in delivering, this can become a case study.
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
11/25/2014 | 6:52:50 PM
Re: jeez, what a story
Steve Saunders - "who hired the last CEO? "

Same guys who went to the guy they passed over and asked him to pretty please take the mess and clean up the mess the superstar left.
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
11/25/2014 | 6:51:42 PM
Re: Third base
If Rami Rahim succeeds he will have helped build the infrastructure for the next century of innovation, generated billions of dollars in wealth, and saved and generated many jobs. 

Pablo Sandoval has a more important job: Throwing and catching a ball. 
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