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2000 CFO Pay: J.P. Morgan Chase’s Shapiro Received $3.5 Million Bonus

Washington Post's Morse takes a $200,000 haircut.
Michelle GabrielleMarch 30, 2001

Mark J. Shapiro, director of finance, risk management and administration for J.P. Morgan Chase & Co., took home more than $10 million last year, including a $3.5 million bonus.

Specifically, Shapiro’s salary was “just” $675,000. His bonus came to exactly $3,531,250. He also received $1,933,406 in “other compensation” and $2,468,763 in restricted stock.

In addition, Shapiro, who was Chase’s vice chairman before the merger of the two banking giants, exercised options that netted him $1,464,095. Total compensation: $10.1 million.

In 1999, Shapiro earned $675,000 in salary, $1,781,250 in bonus, and $964,468 in other compensation. In addition, he received $$1,712,128 in restricted stock awards. Total Compensation: $5,132,846.

“Other compensation” includes employer contributions to 401(k) plans. In addition, J.P. Morgan Chase made contributions to an investment partnership in the amount of $900,000 for 2000, and $600,000 in 1999. In addition, Shapiro received allowances and reimbursements related to his relocation to New York ($707,258 in 2000 and $673,300 in 1999) and tax reimbursements related to such payments ($291,191 in 2000 and $257,418 in 1999).

Elsewhere among proxies released on Friday:

  • The Washington Post Co.’s VP and CFO John B. Morse, Jr.’s total compensation decreased in 2000.

Morse earned $350,004 in salary, $168,683 in bonus, and $19,856 in other compensation at the Washington, D.C-based publishing company. He also received $101,861 from restricted stock awards. Total Compensation: $640,404.

In 1999, Morse’s salary was $324,996 while his bonus was $220,253. He also received a long-term payout of $288,344 and $19,456 in other compensation. Total Compensation: $853,049.

In 2000, the company’s revenue rose 9 percent to $2.4 billion. Operating income, however, decreased 13 percent to $340 million from $388.5 million in 1999.

According to the company, the decline in 2000 earnings was primarily caused by increased costs associated with the development of new businesses, a one-time charge arising from an early retirement program at The Washington Post, higher interest expense, and a reduced pension credit. In addition, 1999 earnings included gains from the sale of marketable securities, which did not recur in 2000. These factors were offset in part by improved operating results at The Washington Post and the company’s television broadcasting division.

  • There’s no “day off” for Mueller Paul Co.’s SVP and CFO Donald E. Golik.

In 2000, Golik took home $170,000 in salary, $24,000 in bonus, and $18,175 in other compensation for his work at the Springfield, Mo.- based manufacturer of industrial equipment. Total Compensation: $212,175.

In 1999, Golik earned $164,700 in salary and $15,500 in other compensation. He also received $32,500 in restricted stock. Total Compensation: $212,700.

Golik’s “other compensation” includes payments for unused vacation and travel-incentive payments (available to all employees) for using cost- effective airline fares on inter-national flights. It also includes company contributions paid or accrued during each year under the profit sharing and retirement savings plans.

In 2000, Mueller Paul earned $3.8 million on revenue of $102.1 million, as compared to $1.9 million on revenue of $92.6 million in 1999.

  • Cone Mills Corp.’s EVP and CFO Gary L. Smith increased his salary in 2000, scooping up an additional $84,000, according to the company’s recently released proxy.

In 2000, Smith earned $209,600 in salary, $41,500 in bonus, and $5,071 in other compensation at the Greensboro, N.C.-based maker of denim and home-furnishing fabrics. Total Compensation: $256,171. Smith’s “other compensation” included incentives paid pursuant to a management incentive plan for 2000, in addition to insurance premiums.

In 1999, Smith took home $167,000 in salary and $4,828 in other compensation. Total Compensation: $171,828.

In 2000, Cone Mills earned $25 million on revenue of $618 million, as compared to $19 million on revenue of $616.3 million the prior year.

  • St. Jude Medical, Inc.’s CFO and VP of finance John C. Heinmiller took home total compensation of $471,290 last year at the St. Paul, Minn.-based manufacturer of devices to treat cardiovascular disease.

In 2000, he received $275,000 in salary, $165,000 in bonus, and $31,290 in other compensation, which includes retirement plan contributions and the value of company provided life insurance.

In 1999, Heinmiller earned $247,404 in salary, $129,887 in bonus, and $30,458 in other compensation. Total Compensation: $407,749.

  • No 2000 bonus for Avista Corp’s SVP and CFO, J.E. Eliassen.

Last year, Eliassen received $237,600 in salary and $26,093 in other compensation at the Spokane, Wash.-based utility. Total Compensation: $263,693.

In 1999, Eliassen took home $234,215 in salary, $59,400 from a performance-based bonus, and $22,652 in other compensation. Total Compensation: $316,267.