Xerox CEO Ursula Burns Rakes in $9.9Million in 2012

Xerox CEO Ursula Burns Rakes in $9.9Million in 2012

Company’s revenue was flat at $22.4 billion
 by Matthew Daneman
Xerox Corp. had a so-so 2012 — revenue flat at $22.4 billion and adjusted earnings down about 4.6 percent from the year before. Xerox shareholders had a blah 2012, with company stock averaging $7.50, down about 20 percent from 2011.

But Xerox’s top executives don’t have much to complain about in terms of how they were rewarded last year.

CEO Ursula Burns in 2012 received compensation totaling $9.9 million, up slightly from $9.7 million in 2011.

Most of her top officers saw significant increases in compensation:

• Former Chief Financial Officer Luca Maestri received roughly $5.5 million, compared to $3.3 million in 2011.

• Xerox Services President Lynn R. Blodgett received $7.6 million, compared to $3.9 million a year earlier.

• Xerox Technology President Armanda Zagalo de Lima’s $6 million in 2012 eclipsed his $5.1 million in 2011.

• Corporate Operations President James A. Firestone received $3.7 million in 2012, about flat compared to 2011.

The Connecticut-based printing and business process outsourcing company on Monday filed its annual proxy statement with the U.S. Securities and Exchange Commission. It includes information on how the company compensated its top executives. Most of that compensation came in the form of stock awards. Actual salary typically represents only a fraction of the total compensation. In Burns’ case, of her $9.9 million, $1.1 million was salary, while she also received stock awards valued at $7.75 million. Burns also received slightly more than $1 million in a cash bonus. (Not included in the Democrat and Chronicle’s calculations is the change in value of the executives’ pensions.)

No executives saw a salary hike in 2012 except for Maestri, who received almost 10 percent, with Xerox saying it determined his base salary was low and in recognition of his work since coming on as CFO. Maestri became corporate controller at Apple Inc. on Feb. 28.

According to Xerox, it sets its pay (base salary and short- and long-term incentive awards) in part by using a variety of other similar-sized companies as comparisons — companies such as Pitney Bowes, Canon, Intel Corp. and Texas Instruments. And according to Xerox, Burns was 4 percent below the median. De Lima also was slightly below the median, while Maestri was at the median and Blodgett and Firestone were both slightly above median.

Blodgett’s compensation for the year was skewed heavily by a $3 million cash bonus paid on the second anniversary of Xerox’s acquisition of his business process outsourcing company, ACS.

Along with stock, paychecks and cash bonuses, the top executives at Xerox also receive considerable fringe benefits. Burns, for example in 2012, received more than $21,000 worth of personal use of corporate aircraft, while the company also paid in excess of $22,000 worth of life insurance premiums for her. And de Lima, who is Portugese, received a $442,000 international assignment allowance to cover such expenses as housing both in the U.S. and Portugal.