Still in the red, Novell gives new CTO $1.875M comp package

Still in the red, Novell gives new CTO $1.875M comp package

Summary: At the same time that Novell reported being $5 million the red (for Q4), restructured, and layed off hundreds of employees, it is also awarding its newest executive -- CTO Jeffrey Jaffe -- an incredibly lucrative compensation package. According to  News.

SHARE:

At the same time that Novell reported being $5 million the red (for Q4), restructured, and layed off hundreds of employees, it is also awarding its newest executive -- CTO Jeffrey Jaffe -- an incredibly lucrative compensation package. According to  News.com's Stephen Shankland Jaffe will be:

  • Paid a salary of $450,000 
  • Get a minimum bonus of $225,000 that could be as high as $450,000
  • Get a $300,000 signing bonus
  • Get $600,000 if he stays for a full year and
  • Will receive a $75,000 relocation expenses to move to Waltham, Mass., where Novell is headquartered.

The deal also includes a healthy dose of stock options and substantial severance pay. While the package guarantees him approximately $1.65 million, its total value  if he maxes out his bonus is $1.875 million (nearly as much as Novell's $2.1 million net income for all of 2005Q3).  According to an old press release on Lucent's Web site,  Jaffe was at one time general manager of IBM's SecureWay business unit.  He joined Bell Labs in 2000 to head up a group of 1500 technical experts as VP of Advanced Technologies.

Anyway.  Wow!

Topic: Enterprise Software

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

3 comments
Log in or register to join the discussion
  • Poor decision making

    Aren't we seeing something similar with the airlines? Company goes in the red, but let's cut off employees while giving upper management all kinds of perks and outright cash.

    Agree or disagree all you want, but if this keeps up MS will have one less linux distro to worry about.

    Arthas
    JamesNT
    • And one more thing...

      This doesn't help the general public's perception of open source being a good business model, either.

      Arthas
      JamesNT
    • The executives who made mistakes...

      ... are paid well to stay because otherwise they might leave for other companies dazzled by their (disastrous) track record.

      New executives go to failing companies because no company with a future would give them as much money.

      I know that sounds stupid, but Boards need some kind of excuse.
      Anton Philidor