Thursday, 1 December 2011

CSC grants senior executive bonuses for just turning up and try cover it up

One of our correspondents has alerted us to an interesting development in CSC’s executive compensation approach which the company has tried to keep quiet about.

In the past, this blog has published details of CSC’s remuneration policies, whereby its top executives were handsomely rewarded for non-performance.  As CSC declined further, this philosophy became “executives’ rewards for failure”.

The SEC 10Q filing relating to the quarter to 30 September 2011 disclosed a new concept… further rewards for two senior executives without any link at all to performance or achievements.

Peter Allen  (Acting President, Managed Services Sector and President, Global Sales and Marketing)   and William Deckelman (Vice President, General Counsel and Secretary)  have been granted a special bonus of a full year’s base salary. What they have to achieve to receive this award is……..nothing, except to  be with CSC on  1 September 2012.

Details of the awards can be found in CSC’s 10Q filing

Additionally it is interesting to learn that CEO Michael Laphen wanted Messrs Allen and Deckelman to keep quiet about this bonus. He wrote to them :

“You are encouraged to keep the existence of this Award confidential. You may of course discuss it with your direct management, family and financial planner, but you are required to refrain from discussing it with any other current or former CSC employee”.

Life as a CSC employee is difficult right now, but its top management is certainly looking after itself and making sure the tough times are kept as far from its executive suites as possible.

1 comment:

Anonymous said...

I am disgusted by this.

Employee pay, bonuses, training and jobs are cut "because the company needs to reduce costs", but it can afford presents like this for Laphen and his acolytes on the Corporate Mismanagement Team.

Does Laphen not realize what CSC employees will think of this, or does he just not care? Why did the Board allow this to happen? Are they as out of touch with the real world as Laphen is?