Aruba Networks CEO Dominic Orr received compensation valued at $400,000 in fiscal 2010, compared to $2.9 million in 2009, according to new documents filed with the U.S. Securities and Exchange Commission.
Orr’s pay package consists entirely of his $400,000 salary. He was awarded no bonus or stock awards during the 2010 fiscal year, which ended July 31.
The company, meanwhile, grew revenue by 34% in 2010. Revenue came in at $266.5 million, up from $199.3 million in 2009. Aruba’s net loss widened to $34 million, compared to a net loss of $23.4 million in the prior fiscal year.
Aruba granted options and restricted stock units to its general employee population, but didn’t grant any equity awards to its executive officers in 2010 (with the exception of newly hired COO Hitesh Sheth, as per the terms of his employment agreement).
That’s a big change from 2009, when Orr received option awards valued at $2.5 million.
“The Compensation Committee considered granting equity awards to the other named executive officers, consistent with its stated intent in fiscal year 2009, but because stock options were previously granted near the end of fiscal year 2009 and due to the adoption of the Bonus Plan in the second quarter of fiscal year 2010, the Compensation Committee determined that the executive officers were adequately incentivized through fiscal year 2010 and no additional equity awards would be granted to the executive officers during fiscal year 2010,” the company said in its proxy statement filed with the SEC on Oct. 26.
According to the company’s newly adopted bonus plan (referenced above), Orr received a grant of restricted stock units equal to 137.5% of his base salary, or $550,000, in the first quarter of fiscal 2011. That bonus was based on the performance of the company during the last two quarters of fiscal 2010.
Orr was named president and CEO of Aruba in April 2006. Prior to that, he served as the company's chairman of the board.
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