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2000 CFO Pay: Boeing’s Sears Cut to $6.1 Million

Also, Echlin's CFO took home more than $2 million and Multex CFO enjoyed a big bonus
Michelle GabrielleMay 2, 2001

The Boeing Co.’s SVP and CFO Michael M. Sears took home over $6 million in total compensation last year. However, it was still about $1 million less than the year before, according to the company’s recently released proxy.

In 2000, Sears’ total compensation was $6,146,755, compared to total compensation of $7,174,743 in 1999.

In 2000, he received $611,693 in salary, $696,300 in bonus, and $30,550 in other compensation from the Seattle, Wash.-based commercial jet maker and aerospace company. He was also awarded $560,423 in restricted stock and $4,247,789 in a long-term payout.

In 1999, Sears received $479,770 in salary, $506,900 in bonus, and $1,272,608 in other compensation. However, that year he received $4,897,465 in restricted stock.

For both years, “other compensation” included the sum of the values of dividend equivalents and interest on dividend equivalents on LTIP (long- term incentive plan) shares granted under the company’s previous long- term incentive plan and not yet converted into stock, company contributions to retirement and 401(k) plans, and premiums paid by the company for term life insurance.

Sears became CFO in May 2000, replacing Deborah Hopkins, who surprisingly left to join Lucent Technologies after only 18 months on the job. He also serves as chairman of Boeing Capital Corp., which provides financing and leasing for a wide range of aerospace products and commercial equipment.

Prior to this assignment, Sears was president of the company’s military aircraft and missile systems, where he was responsible for development and production of tactical aircraft, military transports, helicopters and tactical missiles. He also oversaw the Boeing Phantom Works organization, which develops new products, technologies, and process improvements, until 1999 when Phantom Works became an independent operating organization of the company.

Before becoming an SVP, Sears was president of McDonnell Aircraft and Missile Systems, a part of the company’s former information, space, and defense systems group. From February 1997 to August 1997, prior to the merger of Boeing and McDonnell Douglas, he was also president of McDonnell Douglas Aerospace, and president of Douglas Aircraft Co., the commercial aircraft division of McDonnell Douglas, from April 1996 to January 1997.

He had previously served as VP and general manager of the F/A-18 Hornet strike fighter program, with responsibility for the development and production of all hornet and super hornet variants.

Sears holds both bachelor’s and master’s degrees in electrical engineering from Purdue University and a master’s degree in engineering management from the University of Missouri-Rolla.

In 2000, Boeing earned $2.1 billion on $51.3 billion in revenue, compared to $2.3 billion on $58 billion in 1999.

  • Echelon Corp.’s CFO Oliver R. Stanfield exercised nearly $2.5 million in options last year, according to the company’s recently released proxy.

As a result, his total compensation was $2,737,325. That included $275,000 in salary, $1,386 in other compensation, and exactly $2,460,938 from the exercised options.

In 1999, Stanfield took home $260,000 in salary and $1,386 in other compensation from the Sunnyvale, Calif.-based software company. Total Compensation: $261,386.

Stanfield joined Echelon from Rolm Corp., where he served in several positions since 1980, including director of pricing at IBM’s ROLM Systems; VP, plans and controls; VP, business planning; VP, financial planning and analysis; and treasurer and controller of its Mil Spec Division.

Prior to joining Rolm, Stanfield worked for Itel Corp. as director of inventory control and analysis and controller of the San Diego manufacturing operation; for Computer Automation as a division controller; and for Rockwell International as a manager of accounting, a manager of financial planning, and senior internal auditor.

He began his business career with Ford Motor Co. in 1969 with various accounting positions while completing his MBA and BS degrees at the University of Southern California.

Echelon’s revenues for 2000 were $49.3 million, an increase of 24 percent over revenues of $39.8 million for the same period one year ago. Net profit for 2000 was $84,000, compared to a net loss of $3.9 million in 1999.

  •, Inc.’s CFO John J. McGovern took home $491,305 in total compensation.

He took home $187,308 in salary, $190,000 in bonus, and $113,997 in restricted stock awards at the New York-based provider of company news.

In 1999, McGovern received $20,000 in salary. However, he had just joined the company on November 16 of that year.

Prior to joining the company, he served in senior financial and executive positions for over 20 years, most recently as president and CEO of Northsound Music Group from July 1997 until November 1999. From January 1996 to July 1997, he was managing director of JJM Group LLC, and CEO of Axel Electronics/Sigma Power from 1990 to 1995. He also served more than 10 years at Merrill Lynch & Co. and was SVP of Merrill Lynch Interfunding and director of ML Capital Markets.

In 2000, lost just $1.2 million on revenue of $85.9 million. In 1999, it had racked up a loss of $25 million on revenue of $40.9 million.