AT&T Corp. gave chairman C. Michael Armstrong a 21 percent raise in
salary last year to $1.7 million but slashed his annual bonus by more than 70
percent to reflect the telephone giant's disappointing stock performance.
According to its annual proxy statement, AT&T cut Armstrong's annual
bonus to $650,000. He received a bonus of $2.3 million in 1999.
AT&T said the decision to cut Armstrong's bonus was made 'based on the
company's failure to achieve certain targeted performance.' AT&T's stock
price declined about 60 percent in 2000.
Despite that poor performance, AT&T reiterated, 'Mr. Armstrong's
leadership is critical as the company continues to transform itself as a
The AT&T chairman also received options for 419,200 shares of AT&T
stock, worth about $6.4 million, and 1.1 million shares of AT&T Wireless,
worth about $15.8 million, according to the proxy statement. He received
$737,723 in other compensation.
AT&T Broadband president Daniel Somers also received a lighter bonus
check in 2000, although his base salary went up by $243,750.
Somers' base salary was increased to $800,000 for the year, compared with
$556,250 for 1999. But his annual bonus was slashed to $100,000 from $706,900 in
Somers also received options for 81,000 shares of AT&T stock valued at
$1.2 million and 203,000 shares of AT&T Wireless valued at $2.965 million.
He received $240,875 in other compensation.