Human Capital & Careers

Cashing In on Rising Stocks

Top executives at United Technologies, Lehman made the ''options play'' last year.
Stephen TaubMarch 1, 2004

As proxies fly off the printing presses for the spring annual meeting season, it is becoming very apparent that some top executives took advantage of last year’s stock market rally to cash in on stock options.

United Technologies CFO Stephen Page made more than $11.1 million from exercising options and then selling 195,000 shares of the company’s common stock. His 2003 compensation, which totaled more than $13 million, also included $750,000 in salary and a $1.25 million bonus.

Lehman Brothers Holdings CFO David Goldfarb didn’t fare as well; he reaped slightly more than $2.5 million from exercising options. Goldfarb did receive a $2.5 million bonus on top of his $450,000 salary, and he was awarded nearly $3.6 million in restricted stock. The total for Goldfarb’s 2003 pay package: more than $9 million.

However, this pales in comparison with some of his Lehman colleagues.

From exercising options, Lehman chairman and chief executive officer Richard Fuld Jr. earned more than $37.5 million; co-chief operating officer Joseph Gregory, more than $25.6 million; and co-chief operating officer Bradley Jack, nearly $24 million.

In addition, Fuld received a $6.6 million bonus and $8 million in restricted stock, while Gregory and Jack each received more than a $5 million bonus and more than $5.7 million in restricted stock.

Their total pay packages, including bonuses and stock grants: Fuld, $52.9 million; Gregory, $36.8 million; and Jack, $36 million.

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