NEW YORK— Cendant Corp.said it is “more than halving the compensation” of its chairman/CEO Henry Silverman, by eliminating his right to an annual stock option grant and more closely linking his overall pay to the companys earnings, according to an AP wire report. By overhauling Silvermans employment package, Cendant estimated that his compensation in 2002 would drop to about $15 million, down 58% from $36 million the previous year. The amended agreement, under which Silverman will receive an incentive bonus based on pre-tax earnings, is good through 2012. It stipulates that Silverman will not receive restricted stock, which has limitations on when it can be sold. The company said Silverman, who owns 8 million shares of Cendant and has options to buy 36.4 million more, voluntarily forfeited his annual stock option grant in 2002. Silvermans existing options were granted between 1993 and 2001 at an average exercise price of about $13 per share, the company said. The company also said Wednesday it would begin expensing stock option grants on Jan. 1 at a cost of between 3 cents and 4 cents per share in 2003. Cendant said it will reduce the number of stock options granted to employees and instead issue them restricted stock.
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