The compensation of Compuware Corp. chairman, CEO and co-founder Peter Karmanos Jr. more than doubled in the company’s fiscal year that ended March 31, according to the company’s annual proxy statement to shareholders, released late Wednesday.
Between salary, bonus, stock awards and incentive payments, Karmanos earned $8,592,364 in the fiscal year. That’s up from $4,155,941 in the prior fiscal year and $5,865,739 in the year before that.
The second highest-paid executive at the Detroit-based IT services and software giant, president and COO Robert Paul, rose to $4,351,236 for the fiscal year, up from $2,989,972 the prior year and $2.457,909 the year before that.
CFO Laura Fournier saw her pay rise to $3,389,516 from $2,835,352 the year before and $2,551,350 the year before that.
Denise A. Starr, chief administrative officer, earned $1,344,560, down from $1,566,260 the prior year but up from $1,311,058 the year before that.
Most of the increases stemmed from Compuware’s “non-equity incentive plan.” Karmanos received $3,582,000 from this plan vs. zero the same before. Paul got $1,641,750, also vs. zero the the year before. Similarly, Fournier received $1,343,250 from this plan, vs. zero the year before.
Compuware’s proxy statement said the incentive plan required the company to hit earnings-per-share performance and sales goals for the year.
The proxy statement said top executives also got a “discretionary cash bonus” April 14 — Karmanos $240,000 in short-term and $120,000 in long-term compensation, Fournier $90,000 and $45,000 respectively, Paul $110,000 and $55,000 respectively, and Starr $42,500 and $21,250 repectively.
Compuware (Nasdaq: CPWR) said it engaged the consulting firm Towers Watson to review its executive compensation during the fiscal year. Karmanos’ base salary, annual incentive and bonus were the highest of 15 peer companies studied.
Compuware posted revenue of $892.2 million in the fiscal year ended March 31, down from $1.09 billion the year before. Net income was up, however. to $140.8 million or 60 cents a share in the fiscal year, vs. $139.6 million or 55 cents a share the year before.
Compuware stock closed Wednesday at $8.71 a share, close to its 52-week high of $8.95 a share, reached last October. Its 52-week low, $6.79, was reached almost exactly a year ago, last July.
Compuware has scheduled its annual meeting of shareholders at 3 p.m. Eastern time Tuesday, Aug. 24 at Compuware’s headquarters, One Campus Martius in Detroit.
More at www.compuware.com.
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