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Tech tops in Long Island executive comp [Long Island Business News (NY)](Long Island Business News (NY) Via Acquire Media NewsEdge) For a glimpse at Long Island's biggest earners, look no further than the technology sector. Executives at Long Island public companies, in general, had a good year in 2010, as business rebounded and shareholders reaped gains. But high-tech executives took home the highest compensation, according to an examination of proxy data compiled for Long Island Business News by the Melville-based accounting firm Holtz Rubenstein Reminick. Tech execs crowded out financial and real estate executives at the top of the compensation ladder, not surprisingly, given that the recession placed banks and real estate on rough terrain. Executives at companies in the tech sector took the top 10 slots in total compensation. Total compensation for the top 100 executives was $309.7 million, far surpassing the $263 million in 2008, when the bottom fell out of the economy. "People were beating the hell out of CEOs, saying they shouldn't be making so much money," said Lawrence J. Waldman, partner in charge of commercial audit practice development at Holtz Rubenstein Reminick, of a two-year rebound. "It seems that the bugaboo about compensation has been lifted." In a year when real estate and banking - among Long Island's biggest industries - fell from lofty perches, tech companies performed and compensated well. Long Island's tech sector has transformed into a hybrid high- tech industry, with firms serving industries such as health care and finance, traditional telecoms and distributors. The area's thriving tech sector includes cable company Cablevision Systems Corp.; Pall Corp., which manufactures filters for helicopters and water processing; software maker CA Technologies; nanotechnology firm Veeco Instruments Inc.; military supplier Comtech Telecommunications Corp.; and Broadridge Financial Solutions, which provides digital services to the financial industry. Tech companies aren't jacking up base salaries, which remain a mere sliver of compensation, instead increasing incentive pay. The top 100 salaries at Long Island companies slipped 3 percent from 2009, while stock awards rose 8 percent and cash incentives increased 17 percent. The four most-highly compensated executives at public companies in 2010 were at Cablevision, led by COO Tom Rutledge, a former Time Warner executive, who earned $28.2 million. The Cablevision four, including Chairman Charles Dolan, CEO James Dolan and Vice Chairman Hank J. Ratner, reaped $21 million in stock and $31 million in cash incentives. CA Technologies CEO John Swainson, a former IBM executive who has since left CA, received $11.5 million (including nearly $5 million in stock and $5 million in other compensation before leaving the firm), followed by Pall Chairman Erick Krasnoff, who is retiring next year, at $10 million. Griffon Corp. CEO Ronald Kramer came in next at $8 million, followed by Broadridge CEO Richard Daly at $6.6 million. Arrow Electronics CEO Michael Long earned $6.4 million and Com- tech CEO Fred Kornberg earned $5.8 million. "In the last couple of years, through thick and thin, technology has been a growth sector," MarketWatch Chief Economist Irwin Kellner said. "It has paid good money to attract talent to help it grow. I think that's true not only on Long Island, but anyplace else in the country." Some tech executives earned a substantial portion of their firm's profits. In one case, executive compensation erased income. Griffon's Kramer, the former president of casino resort company Wynn Resorts, earned $8 million or 84 percent of the firm's profits, while CFO Douglas Wetmore earned $1.7 million, or 18 percent of profits. Their collective compensation exceeded profits. The top four executives at Cablevision earned $66.9 million, or 19 percent - nearly one-fifth - of the firm's $361.6 million annual income. Four executives at high-tech security firm Verint Systems Corp. earned 32 percent of its $15.6 million income, while executives at tech companies such as Comtech, Audiovox and Systemax were paid more than 5 percent of total earnings. Kellner said some critics "argue that executives in a number of sectors are paid more than they deserve" and that, "when you're a public company, you hire managers to run the company. The managers take care of themselves." But nearly all of the tech companies that compensated well had strong years, with Cablevision's $361.6 million income up 27 percent over the prior year. CA's net income jumped 15 percent to $771 million, while Pall's income jumped 23 percent to $241 million. Arrow Electronics' income nearly tripled to $479 million. Only Griffon, which also makes home-building products, saw income tumble 49 percent to $9.6 million. Even firms working with the military, such as Comtech, which makes tracking equipment, performed well. Comtech's sales rose 33 percent from 2009's $588.37 million, while net income increased to $60.63 million in a 22 percent lift. Griffon's Telephonics operation, which makes military communications systems, had a good year, although the parent company didn't. Even semiconductor firm Standard Microsystems is turning around, following a restructuring, shrinking its loss from $49 million in 2009 to $8 million in 2010 and turning a $10.2 million profit for its year ended February 2011. Waldman said many firms are doing well with stock price, sales and profits, potentially setting the stage for another good year for executives. "We hit bottom in March of 2009," he said, noting last year was often good for executives and shareholders. (c) 2011 ProQuest Information and Learning Company; All Rights Reserved. |