Compensation for Adobe Systems president and CEO Shantanu Narayen took a big hit in 2009, as did the company’s annual revenue and income.
Narayen received compensation in fiscal 2009 valued at $5.2 million, compared to $16.4 million in 2008, according to documents filed late last week with the U.S. Securities and Exchange Commission.
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As a company, Adobe saw revenue slide 18 percent and its income plummet 56 percent during its fiscal year ended Nov. 27.
Adobe recorded net income of $386.5 million on revenue of $2.9 billion in 2009. In 2008, the company reported net income of $871.8 million on revenue of $3.6 billion.
Narayen’s pay package includes an $875,000 salary, which is unchanged from 2008.
The biggest hit to his compensation came from the value of performance stock units. The estimated value of stock and option awards granted to Narayen during fiscal 2009 was $4.3 million, down from $14.2 million in 2008. His other
compensation and perquisites totaled $7,740 (for 401(k) company match and life insurance premiums).
Narayen also missed out on Adobe’s executive bonus plan—as did all of the company’s named executive officers. He didn’t receive any performance-based cash compensation in 2009, while he took home $1.3 million in cash incentive awards in 2008.
“During fiscal year 2009 as compared to fiscal year 2008, our total GAAP Revenue decreased by $634.0 million or 18 percent. The unanticipated magnitude of the effects of the recession on our business in fiscal year 2009 resulted in actual GAAP Revenue achievement of approximately $2.9 billion, or 86 percent of the target, which did not meet the minimum funding threshold metric. As a result, no cash incentives were funded or paid under the Executive Bonus Plan,” Adobe said in its proxy statement.
Narayen’s total pay is calculated using data supplied in a preliminary proxy statement filed with the Securities and Exchange Commission on March 5. The following figures are taken from the summary compensation table: salary, bonus, non-equity incentive plan compensation and all other compensation (perks). Added to those figures is the estimated value of stock options and awards granted during the year; that figure is taken from the table that summarizes grants of plan-based awards. The calculations don’t include changes in the value of pension benefits.