6th March 2014
Do ST top execs know something we don’t know? We don’t know what will be the fate of ST top management after the company’s next AGM, expected in June, but the management have already been making plans for a comfortable retirement.
CEO Carlo Bozotti’s current three year contract expires at this year’s AGM and, last year, the AGM was held in June.
In a filing with the US SEC, ST says it has set up a ‘complementary’ pension scheme for Bozotti and ‘other key executives to be selected by the CEO.’
‘With respect to such plan, we have set up an independent foundation under Swiss law which manages the plan and to which we make contributions,’ says ST in the filing.
ST’s contributions to this ‘foundation’ were $1.7 million last year.
These contributions to the ‘complementary’ pension plan were in addition to the $5.2 million of payments made in 2013 to the existing ST management pension scheme.
‘The aggregate additional amount set aside by us in 2013 to provide pension, retirement or similar benefits for our Executive Committee and our Managing Board as a group is in addition to the amounts allocated to the complementary pension plan described above and is estimated to have been approximately $5.2 million, which includes statutory employer contributions for state run retirement, similar benefit programs and other miscellaneous allowances’, states the SEC filing.
Bozotti had total compensation of $3.4 million last year made up of $1.059 million in salary, $1.165 million in bonus and $1.181 million in ‘charges and non-cash benefits’. How the bonus was calculated is curious because ST’s 2013 revenues were $8.08 billion compared to 2012 revenues of $8.49 billion and, following a loss of $465 million, ST’s net cash position was $741 million at the end of 2013 compared to $1.192 billion at the end of 2012.
In the year Bozotti took over as CEO – 2005 – ST’s revenues were $8.88 billion.
Of course it’s a comfort to all of us to know that the $1.165 million bonus and the ’complementary’ pension plan will help to keep Bozotti in appropriate style as a CEO whose company has not seen any growth in his nine year tenure.
ST is in line for a Euros 600 million hand-out from the French Nano2017 programme. We now know where that state-subsidised funding from the French government goes!