Microchip Technology CEO gets $4.2M in fiscal 2008
NEW YORK (Associated Press) - The president and chief executive of chip maker Microchip Technology Inc. received compensation valued at $4.2 million in the fiscal year ended March 31, a 25 percent decrease from the previous year, according to a regulatory filing Friday.The Chandler, Ariz.-based company paid Steve Sanghi $532,675 in base salary and a cash bonus of $7,714. Sanghi also received a performance-based bonus of $751,495.
Additionally, Sanghi received stock and option awards valued at $2.9 million on the days they were granted.
Sanghi also received $4,231 in all other compensation, which included 401(k) plan matching contributions and life insurance premiums.
Sanghi's pay package totaled $5.6 million in 2007, when he received a performance-based bonus of about $1.2 million and stock and option awards valued at $3.9 million, according to a calculation by The Associated Press.
The AP's total pay calculations include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals that companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.
According to its proxy filing, Microchip's compensation policy is based on a "pay-for-performance" philosophy, one that rewards performance that may contribute to increased shareholder value and that balances short-term and long-term goals.
In fiscal 2008, Microchip reported income of $297.7 million, or $1.40 per share, down from $357 million, or $1.62 per share, in the prior fiscal year.
Sales were nearly flat at about $1.04 billion.
Shares slipped 8 percent during the fiscal year. Shares added 46 cents to $29.68 in Friday afternoon trading.