Big Options Gains for Mid-Tier CFOs

Vornado, Chico's, Nabors Industries, and Affymetrix release proxies.

Finance executives at mid-size companies made substantial gains by cashing out some of their options holdings.

For example, Joseph Macnow, executive vice president, finance and administration, and chief financial officer for Vornado Realty Trust, netted nearly $7.6 million from options exercises. He received a $750,000 salary in 2005—roughly a 40 percent hike over the prior year’s annual wage—and a $500,000 bonus, which is nearly 50 percent larger than his last bonus.

Macnow also received $500,000 in restricted stock and another $259,000 in other annual and long-term compensation, which included the value of a car and driver provided to him for both business and commuting purposes. In its proxy, the real estate investment trust noted that the amount reflects the aggregate incremental cost to the company for the car, driver and related expenses without deducting costs attributable to business use.

Macnow’s total 2005 compensation was $9.6 million. Vornado’s market capitalization is $13 billion.

Charles Kleman, of $6.6 billion (market cap) retailer Chico’s FAS Inc., pulled in more than $5.1 million in gains from exercising stock options. Kleman, who serves as executive vice president, finance, CFO, and treasurer, also received a bonus of nearly $1.2 million, more than double the payout he received last year. Add in a $547,000 salary, and $221,000 in restricted stock, and the total 2005 compensation package for Kleman amounts to about $7 million.

Bruce Koch, vice president and CFO of Nabors Industries Ltd., the oil and gas exploration company with a $12 billion market cap, received more than $3 million from exercising stock options. Otherwise, his salary and bonus combined came to $315,000 while restricted stock awards amounted to nearly $94,000.

At Affymetrix, Inc., which provides high-density microarray products used in genetic analysis, executive vice president and CFO Gregory Schiffman earned $2.6 million from exercising options. His salary was less than $348,000. Affymetrix has a market capitalization of $2 billion.

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