$2.6M Pay for Tyco Electronics CEO

The chief executive officer for Tyco Electronics Ltd., Thomas Lynch, received a really generous pay package the previous year. Lynch received earnings totaling to around one fourth of the entire fiscal budget of the company in 2008. The year before that in 2007 he received a pay package of two point six million dollars during the company operation’s first full year as its own entity. This was according to the calculations that were made by The Associated Press and is based on the proxy filing of the company last Friday.

Performance-Based Bonus

The fifty four year old Lynch had enough reason to get such a big compensation package. the rise in his base salary of seven percent to rest at nine hundred and fifty thousand dollars back in 2008 as well as his cash bonus (based on his performance) rose nearly seventy percent to rest at one point four million dollars was in order. This was according to the filing of Tyco Electronics with the SEC or the Securities and Exchange Commission. Lynch also received perks totaling one hundred and eight five thousand and ninety seven dollars. Aside from this, he also got a cash allowance of ninety five thousand dollars – which is roughly ten percent of his total salary. There was, of course, a difference between his total pay in 2007 and in 2008 such that he only received one-time equity awards at the time when the electronics division was launched in the Tyco International last 2007. The company, which holds its headquarters in Bermuda, also says that these payments were made to facilitate a more meaningful ownership stake for their newly independent company.

Compensation Values

The 2007 compensation package received by Lynch was at an eleven million dollar value according to the calculations of the Associated Press. This also includes a nine million dollar equity award. Their company had not been able to issue any other equity awards back in 2008 and apart from this equity award the compensation package he received was a lot bigger last year compared to the previous year. The 2008 fiscal year had ended in the month of September just as the financial crisis started deepening. It was still quite solid financially, because salaries had risen to fourteen percent and rested at fourteen point eight billion dollars and the entire company was able to post a one point seventy eight billion dollar profit. Ever since that time, the company was able to come up with around three billion dollars worth of losses when it had absorbed really big write-downs that will account for declines in sales in the electronics components division and specialty products. The company will be holding its annual meeting on June 22 in their Bermuda headquarters.