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2000 CFO Pay: Teradyne’s Bradley Earned Nearly $6 Million

Received more than $5 million in restricted stock
Michelle GabrielleApril 20, 2001

Teradyne, Inc.’s VP and CFO, Michael A. Bradley, took home nearly $6 million in total compensation last year, according to the company’s recently released proxy.

Most of that amount came from $5,038,124 of restricted stock awards.

Bradley also received $317,900 in salary, $469,643 in bonus, and $61,015 in other compensation from the Boston-based maker of semiconductor test equipment. His total compensation for 2000 was $5,886,682.

In 1999, Bradley received $261,544 in salary, $327,862 in bonus, and $38,769 in other compensation. Total Compensation: $628,175.

In both years, “other compensation” represented matching contributions by the company to its savings, supplemental savings, and 401(k) plan.

Bradley joined Teradyne in 1979 as the financial controller of the customer service group. He later served as product manager of the mixed- signal business.

The company has recently undergone several management changes and layoffs. Bradley was included in those changes.

In March 2001, Bradley was promoted to president of Teradyne’s semiconductor test division. At that time, Gregory Beecher replaced him as CFO and VP. Beecher had been a senior partner in the technical practice at PricewaterhouseCoopers, Teradyne’s outside audit firm.

Also in March, Teradyne said that Richard Schneider was promoted to president of its connection systems division. Schneider had joined Teradyne in 1988 as marketing manager for commercial connection systems products.

“The changes and the addition to our management group will help us accelerate the development and deployment of the products and services that our customers require,” said Teradyne chairman and CEO George Chamillard, in a statement.

That same month, Teradyne announced it would lay off 650 employees in the face of falling demand for its products and services, as well as an attempt to curtail operating expenses. The company, which employed more than 10,000 people at the end of 2000, said it would also institute furloughs, salary delays for all employees and a salary cut for senior managers.

When the company released its earnings for 2000, Chamillard said, “Teradyne had a terrific year in 2000. Sales broke $3 billion for the first time, with growth of 70 percent, mainly driven by growth of almost 100 percent in our connections systems business and of about 70 percent in our semiconductor test business. We had record net income of $518 million (on $3 billion revenue), and we improved our product positioning across the board. In the fourth quarter, we had sales of $789 million, our second highest quarter ever, and we earned $0.66 per share, in line with our guidance.

In 1999, the company earned $191 million on $1.8 billion in revenue.