CSC has issued its proxy statement outlining the compensation of its top executives for the year to March 2012. The past twelve months have seen CSC reach new lows of financial performance.
There has also been the embarrassment of the NHS project failure, the ongoing SEC investigations into accounting irregularities, the “intentional errors” in NHS profit recognition, the shareholder lawsuits and the allegations of CSC’s involvement in torture and flights of rendition.
One would hope that these failures would be reflected in the compensation of the CSC senior executives responsible under the company’s “pay for performance” philosophy.
The total FY2012 compensation of Guy Hains, Europe President, who had direct accountability for NHS, was a modest US$ 2,195,687 (approx £1,375,000).
Former CEO Michael W Laphen, who was retired in March 2012 after 5 years of almost uninterrupted failure, had to make do with just US$ 20,859,000 for his final year of destruction of employees’ jobs and of shareholder investments.
The hardworking CSC employees who are losing their jobs due to the failure of their management will be comforted to see that Messrs Laphen and Hains are sharing in the hardship they are suffering.