Wednesday, 21 February 2018 | MYT 11:07 AM
Broadcom's Tan received US$103m in compensation in 2017
NEW YORK: Broadcom Ltd. Chief Executive Officer Hock Tan received $103.2 million in reported compensation last year, his biggest-ever pay package, as the computer-chip maker prepares to make the largest acquisition in the history of technology.
Tan’s stock grant, valued at $98.3 million, will vest in 2020 and 2021 at its target value if the San Jose, California-based company’s shares outperform at least half of the companies in the S&P 500 during the performance periods, according to a regulatory filing on Tuesday.
If the firm’s stock return exceeds 90 percent of members of the index ending in 2021, and the return is positive, Tan can receive a maximum of 4.5 times as many shares.
It’s the largest pay package Tan has received in a single year. Broadcom is rewarding him for what he’s done and what he might pull off -- his $121 billion hostile bid for Qualcomm Inc., the maker of chips that power smartphones. Before this, his largest compensation package was the $31.9 million he got for 2013 at a Broadcom predecessor company, Avago Technologies Ltd.
Investors like Tan’s track record. Broadcom’s share price has climbed steadily from less than $20 in 2009 when it went public to its current $249.62. That’s helped him reap more than $194.6 million from vested shares and option exercises over the past five years, according to data compiled by Bloomberg.
Tan has built one of the world’s largest chipmakers through a string of acquisitions, slashed costs to boost profitability and is three weeks away from one more coup. On March 6, Qualcomm shareholders will vote on whether to elect Broadcom-nominated directors and overturn the opposition of that company’s board and management to the takeover offer.
The CEO also got $1.1 million in salary and a $3.71 million bonus. The company said it doesn’t intend on granting him any additional equity that can be earned before 2021. - Bloomberg