Microchip drops pay for CEO Sanghi to $3.3M
Phoenix Business Journal July 12, 2009
Microchip Technology Inc. CEO Steve Sanghi saw total compensation fall for the third straight year pulling in $3.31 million for the fiscal year ended March 31.
That’s down from $3.77 million in fiscal 2008 and $4.41 million in 2007, according to the company’s annual proxy statement filed with the U.S. Securities and Exchange Commission. His fiscal 2009 package included $502,985 in salary, a bonus of $3,857, stock awards of $1.68 million, options valued at $739,416, incentive pay of $374,413, and $2,496 in life insurance and 401(k) benefits.
The proxy statement notes that base salaries for Sanghi and some other executives were not increased last year and reduced by 10 percent in December as well as a week’s furlough because of the economy. The CEO along with many other employees also dropped a week’s pay in the third fiscal quarter. The filing also notes that incentives and bonuses for executives reflect goals met during the company’s first two quarters and were reduced to conserve cash.
Microchip sales slipped to $903 million in fiscal 2009 after two years above the $1 billion mark, as the economy impacted all of its product lines globally, according to SEC filings. The chipmaker, however, still posted a profit of $249 million, down from $298 million the previous year.
Sanghi has been CEO of Chandler-based Microchip since 1991. He owns or controls 5.84 million shares, 3.2 percent, of Microchip stock. Shares (Nasdaq:MCHP) closed at $22.73 Friday, July 10, and have traded between $16.23 and $34.19 over the past year.
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