In May 2001 Comverse Technology (Nasdaq: CMVT) announced a cut of several percentages in senior executives' wages, adding that CEO Kobi Alexander's salary would be cut by 90%.
The 10-Q the company filed yesterday with the U.S. Securities and Exchange Commission provides the actual numbers. Alexander was entitled to a salary of $672,000 and a $1.5 million bonus for 2001 (which ended in January 2002). During the period, Alexander pocketed $217,000, lower than the average wage for a junior manager in a Wall Street company.
The sum represents 10% of the total to which Alexander was entitled, about $2.2 million, but the company announced last month that the CEO had voluntarily waived his bonus. In other words, the two cuts (one 90% salary cut and the bonus waiver) announced by the company did not take place, but a single cut in the overall amount.
TheMarker reported last month that the company, which has laid-off 1300 employees in the past year, would grant smaller-than-usual bonuses to remaining employees and that the three most senior executives had waived their bonuses.
Market sources estimate that Comverse will have to continue downsizing in another wave a few hundred employees in order to cut costs, although the company has denied the speculation. In the meantime, subsidiaries Ulticom (Nasdaq: ULCM), Verint and StarHome have fired workers.