Struggling Gateway cuts big check for execs
Orange County computer maker Gateway Inc. Monday announced it paid three top executives nearly $4.5 million in executive compensation in 2006, including signing bonuses, severance pay and other incentives.
The firm paid J. Edward Coleman, current chief executive officer, a total of $2.72 million since his start with the firm on Sept. 18.
The total includes a $217,000 cash signing bonus, $25,361 in relocation costs, and a $1,875 401(k) match, according to the company’s annual proxy statement filed with the Securities and Exchange Commission.
Coleman also received a bonus of $189,500, an amount that exceeded his entire 2006 salary by $2,000. Coleman’s regular annual salary has been set at $650,000.
The Irvine-based firm also granted Coleman $2.20 million in stock options under the company’s equity incentive plan.
Gateway has come under intense shareholder pressure to improve its performance.
In February, it announced plans to cut $20 million to $25 million in expenses and lay off employees. Earlier in 2006, the company announced cuts of $30 million to $35 million and nearly 100 jobs amid declining revenue and flat PC sales.