No Pay Raise For Silverman This Year: Report

NEW YORK— Henry Silverman, Cendant Corp.’s chairman/president/CEO earned a $7,891,824 bonus in 2002 compared with $ 4,715,250 in 2001, according to a proxy filed today with the Securities and Exchange Commission. A report from Dow Jones indicated last July, Cendant entered a new 10-year employment agreement with Silverman, noting the company was to pay Silverman a salary of $3,196,000 in 2002, an increase of 1.7% from 2001 levels. With the new contract, Silverman received an annual base salary of $3.3 million, effective July 1, 2002, and will receive no increase in 2003. Silvermans total salary in 2002 was $3,196,000. For first-half 2002, Silverman received a bonus based on his old contract, which called for an annual bonus equal to the lesser of 0.75% of the companys EBITDA or 150% of his annual base salary, the report indicated. Under the new agreement, for second-half 2002, Silverman earned a bonus of 0.6% of Cendants pretax income, with a limit on the bonus of $100,000 per each cent of diluted earnings per share. The new employment agreement calls for eliminating option grants to Silverman, according to the filing. On Dec. 31, Silverman held 36,389,859 exercisable stock options, according to Dow Jones. Cendant said Silverman will receive a lump-sum cash payment equal to the sum of his base salary and bonus multiplied by the greater of the number of years remaining on his employment contract or 2.99, if he resigns for “good reason” or is terminated without cause. In 2001, Silverman received a salary of $3,141,510 and options for six million shares of common stock, the report indicated. SOURCE: Dow Jones Business