New Juniper CEO Can Be Thankful for $14.5M
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.
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.
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