Note: This article has been corrected and clarified from a previous version, published July 15 on GenomeWeb. The earlier version stated, as the SEC documents appeared to indicate, that the executives had received their performance bonuses in stock and cashed them out. GenomeWeb regrets this error.
NEW YORK, July 17 - Less than two weeks before Applied Biosystems' announcement of its fourth quarter and end-of-fiscal year earnings, eleven of the company's top executives received cash performance awards totaling over $1.2 million, which will vest over a minimum of eight quarters, according to insider trading forms filed with the US Securities and Exchange commission and company executives.
The executives acquired the performance units, which are awarded for the fiscal year should the company stock price reach and stay at or above $18.54 for a specified time period, the filings state.
The executives did not receive similar bonuses at the end of fiscal year 2002.
The performance units were technically awarded by the company's board of directors as derivative securities, and thus were required to be reported to the SEC, but are to be paid in cash over a minimum of eight quarters, on the condition that the employee remain with the company and an aggregate cap on expenses be met, according to Peter Dworkin, Applera's vice president of investor relations.
The filings indicate that Tony White, CEO, chairman and president of ABI's parent Applera, was awarded 15,780 shares in performance units, at a share price of $19.695 (the price reported on the SEC form) worth over $310,787 in cash. Michael Hunkapiller, president of ABI, William Sawch; senior vice president and general counsel of Applera, and Dennis Winger, senior vice president and CFO of ABI, were each awarded 7,890 shares, worth $155,393 in cash.
Additionally, Patrick Carroll, senior vice president of worldwide sales and service for ABI, Robert Ragusa, senior vice president, global operations of ABI, and Barbara Kerr, vice president of human resources at ABI, were each awarded 3,945 shares worth $77,696.78 in cash; Deborah Smeltzer, vice president of ABI's knowledge business, and Robert Jones, ABI's vice president of R&D, were each awarded 2,958 shares worth $58,257 in cash; Ugo Deblasi, vice president and controller of ABI, and Sandeep Nayyar, vice president and controller of ABI, were each awarded 1,972 shares worth $38,838 in cash.
Applied Biosystems' parent Applera plans to announce its end-of year and fourth-quarter financials on July 23.