Pay for Top 100 O.C. Executives Reflects Trend

For many Orange County executives, 1991 was a year when their pay packages came under greater shareholder scrutiny and corporate boards were cautious in handing out cash bonuses and perks.

It mirrored a trend statewide of keeping executive compensation in line with a company’s financial performance. Of the top 100 county executives on the list of publicly traded companies, one-third of the officers saw their cash compensation remain unchanged or had it reduced.

Even so, what many at the very top got in their pay envelopes was hardly disappointing. In fact, the roster of $500,000-plus pay packages grew again, pushing the county’s corporate brass closer to the statewide median.

The median compensation package of the top 100 executives was $468,252, up 3% from $454,330 a year earlier. The median for the statewide top 100 dropped to $1.88 million in 1991, from $2 million in 1990. Of all Orange County executives surveyed, the median pay in 1991 was $203,609, up 9.2% from $186,500 a year earlier.

Leading the list of 346 Orange County public company chiefs was the county’s first $6-million man, ICN Pharmaceuticals Chairman Milan Panic. His $6.1-million package, which included $5.4 million in stock awards, placed him seventh in the statewide list of best-compensated executives.

Because only public companies report their pay arrangements, well-known county executives such as South Coast Plaza developer Henry T. Segerstrom, Irvine Co. owner Donald L. Bren and home builder William Lyon are not listed. Their pay packages, like their companies, are private.

Eighteen public company executives passed the $1-million mark in total pay; there were seven a year earlier. The group is a hodgepodge of pharmaceutical and high-tech executives, as well as the chieftains at Fluor Corp. Forty-five executives had packages of $500,000 or more; there were 41 a year earlier.

More than half of the corporate millionaires got there through stock options, awards and other non-cash compensation.

It was the stock market that made the difference. While the going was good, heads of public companies cashed in options and boards of directors doled out stock awards to make up for a limit on cash compensation.

“We’ve had a recession and the stock market is going up,” said Fiona MacDonald, a compensation consultant at William M. Mercer Inc., a management consulting firm in Los Angeles. “It’s a little weird. . . . But (executives) will be nervous. They can’t see the price going up any higher. So they want to cash in some options.”

The stock market also became an attractive place to raise more capital, particularly for home-building companies pinched by restrictions on bank financing. The Presley Cos. began trading shares last fall. Presley President Wade H. Cable, who had total compensation of $1.7 million, placed 10th on the county list.

At industrial giant Fluor Corp., four executives exercised a total of $5 million worth of options and were granted a combined $2.4 million in stock, to be ranked in the top 10. All told, Fluor Chairman Leslie G. McCraw; President and Chief Operating Officer Vincent L. Kontny, and subsidiary presidents Gerald M. Glenn and Hugh K. Coble made a total of $4.1 million in cash compensation.

Presumably, the engineering and construction company rewarded its top officers because Fluor had its most profitable year ever. Profits in 1991 grew 9%, to $149.1 million.

Fluor has for years been the largest public company in the county. (Rockwell International, which is larger than Fluor in total sales, moved to Seal Beach in December, too late to be included in this year’s county rankings.)

Fluor executives have been stalwarts on the list, so their inclusion this year is no surprise. But longevity is an exception to the rule in Orange County, where there are many small- and middle-size firms that tie executive pay to a company’s fortunes. Because financial performance can be fluid, top executives move up and down in the rankings year to year.

“There’s much more correlation in pay and performance” in Orange County than elsewhere, said Lawrence Wangler, managing partner of the Newport Beach office of TPF & C, the compensation consulting arm of Towers Perrin, an international benefits consulting firm. “That’s much stronger. There’s a lot of emphasis on stock.

“In general, the firms tend to stay away from the exotic. They offer long-term incentives versus something like convertible debentures or indexed options.”

Indeed, ICN’s Panic topped the list after ranking only 28th a year earlier. Panic’s package grew 834% to $6.1 million, including $5.4 million in stock awards. Company officials say he was awarded a bonus for helping to arrange a joint venture in Yugoslavia.

It was a comeback year for the company. ICN also rebounded from a $26.7-million loss in 1990 to a $5.9-million profit last year. For the 12 months ended Friday, ICN shareholders saw the stock climb 243%--from $5.125 to a close of $12.50.

The profits of SPI Pharmaceuticals, a separately traded ICN subsidiary, more than doubled, to $30.1 million. Company President Adam Jerney collected nearly $2 million in cash and stock to rank eighth on the list. He took advantage of $1.5 million in stock options.

Compensation consultants said executive compensation at such biotech firms as ICN and SPI tends to boom because of the risks involved in getting government approval for products. Pay packages can languish for years, then pay off big.

“Pharmaceuticals, like aerospace firms, are on a long-term business cycle,” said MacDonald, the Mercer consultant. “You have a 10-year cycle in research and development. There is a lag effect, then a payoff. You won’t see them up at the top next year.”

Ironically, compensation consultants have noticed greater shareholder and public scrutiny over the past year on awards of stock options and grants. But among the county’s smaller and middle-size firms, that remains to be seen.

“The shareholders are waking up and asserting themselves,” said Andy West, head of the executive compensation practice at the Wyatt Co., a compensation consulting firm in San Francisco. “It’s really the larger, institutional holders. It remains to be seen whether it will trickle down. Smaller companies aren’t getting a lot of scrutiny unless they are truly a dog performer.”

Already, compensation analysts say large cash bonuses have been cut. But that could be because of the recession--as opposed to shareholder unrest--because decisions over bonuses usually are at the discretion of a company’s compensation committee.

The few firms that gave high cash bonuses tended to have extraordinary years. Among them was Irvine-based AST Research, which saw profits jump 33.5%, to $70.2 million--while profits in the personal computer industry were dismal overall.

The company awarded its five top executives a total of $5.9 million in cash bonuses, enough to push them all into the county’s top 25. Chairman and President Safi U. Qureshey and Chief Operating Officer Thomas C.K. Yuen each had $2.8-million packages that included $2.4 million in cash bonuses.

By contrast, executives in home building and office construction seemed to suffer, after being rewarded well when business was booming in the 1980s.

Construction firms “have good years, their pay is very high,” said West, the Wyatt Co. consultant. “When business dries up, it plummets.”

Christopher C. Gibbs, executive vice president and chief executive officer of the J.M. Peters Co.--ranked near the top of the county list for the past two years--fell to 67th in 1991. His pay package dropped 77%, to $411,332. Compensation for Chairman and President James M. Peters dropped 67%, to $457,750, and he ranked 58th.

The Resolution Trust Corp. has control of J.M. Peters as part of the liquidation of failed San Jacinto Savings & Loan Assn. of Houston, the majority owner of the upscale Newport Beach home builder.

Still, not every developer took a beating. Standard Pacific Corp. President Ronald R. Foell ranked 15th with a $1.2-million package, and Chairman Arthur E. Svendsen was 18th with just over $1 million. Their pay was unchanged from a year before.

Four executives at the Presley Cos.--including Cable--placed in the top 100, but their compensation could not be compared to pay in previous years because the firm recently became publicly owned.

Orange County’s Top 100

The following table ranks the top executives at public companies based in Orange County according to their 1991 compensation. It shows total compensation, the change from last year, the amount of salary and cash bonuses and any stock options or stock grants provided.

Rank Rank Rank Name & Company Title 1 28 28 Milan Panic COB,P,CEO ICN Pharmaceuticals Inc. 2 6 4 Leslie G. McCraw COB,CEO Fluor Corp. 3 4 14 Gerald M. Glenn SO Fluor Corp. 4 16 13 Hugh K. Coble SO Fluor Corp. 5 23 69 Safi U. Qureshey COB,P AST Research Inc. 6 24 68 Thomas C. K. Yuen COO AST Research Inc. 7 2 7 Vincent L. Kontny P,COO Fluor Corp. *8 79 93 Adam Jerney P SPI Pharmaceuticals Inc. 9 53 NA Amin J. Khoury COB,CEO,SEC,TRE BE Avionics Inc. 10 NA NA Wade H. Cable P,CEO Presley Cos. 11 105 NA Bruce C. Edwards SVP,CFO AST Research Inc. 12 9 39 John C. Warner Former COB,CEO Quiksilver Inc. 13 87 NA David G. Kirkey VP Advanced Logic Research Inc. 14 15 24 Gavin S. Herbert COB,CEO Allergan 15 12 5 Ronald R. Foell P Standard Pacific 16 142 NA John C. Olson VP AST Research Inc. 17 91 NA David L. Kelly VP,AS Advanced Logic Research Inc. 18 17 6 Arthur E. Svendsen CEO Standard Pacific 19 NA NA Wai S. Szeto VP AST Research Inc. 20 NA NA Douglas L. Drumwright P,CEO Care Enterprises Inc. 21 NA NA Charles S. Mack COO,SEC Care Enterprises Inc. 22 11 3 James W. Conte COB,P,CEO Community Psychiatric Centers 23 154 NA John Giordani SVP,CFO ICN Pharmaceuticals Inc. 24 29 19 Terry Hartshorn P,CEO Pacificare Health 25 14 61 William C. Shepherd P,COO Allergan 26 NA NA Douglas H. Stickney COB,P,CEO Quantum Health Resources 27 47 NA Pat Vitacolonna EVP,COO FHP International Corp. 28 178 NA Jack W. Brown COB,P Gish Biomedical 29 20 20 Robert E. Martini P,CEO Bergen Brunswig Corp. 30 13 12 Robert Gumbiner CEO FHP International Corp. 31 223 NA James T. Richardson VP,CFO,TRE,SEC Advanced Logic Research Inc. 32 NA NA Robert F. Byrnes COB,CEO Tokos Medical Corp. 33 44 23 Alan Hoops EVP,COO Pacificare Health 34 NA NA L. C. Albertson Jr. SVP Presley Cos. 35 22 NA Ken Chilvers P,CEO Wet Seal Inc. 36 NA NA Craig T. Davenport P,COO Tokos Medical Corp. 37 7 21 Albert L. Nichols COB,P,CEO Nichols Institute 38 25 29 Jerome W. Cwiertnia P,CEO National Education Corp. 39 NA NA Jeremy M. Jones COB,P,CEO Homedco 40 18 18 Roger W. Johnson COB,P,CEO Western Digital Corp. 41 21 9 Louis T. Rosso COB,P,CEO Beckman Instruments Inc. 42 31 52 George Boyadjieff P,CEO Varco International Inc. 43 80 80 Ernest S. Rady COB,CEO Westcorp 44 NA NA David M. Siegel SVP,CFO,TRE Presley Cos. 45 84 87 D. Howard Lewis COB,P,CEO Archive Corp. 46 62 NA Robert C. Bishop SVP,SO Allergan 47 77 NA Richard M. Haugen SVP,SO Allergan 48 64 64 George Kadonada COB,P,CEO US Facilities Corp. 49 40 34 Dwight A. Steffensen EVP,COO Bergen Brunswig Corp. 50 66 NA W. Clay Matthews SVP,Former P,CEO Wahlco Environmental 51 NA NA E. Morgan Massey SO Fluor Corp. 52 63 43 Westcott W. Price P FHP International Corp. 53 46 79 Ronald N. Tapper EVP,SO National Education Corp. 54 NA NA Robert C. Sala VP SPI Pharmaceuticals Inc. 55 59 40 Norman Abramson P,COO,SEC Clothestime Inc. 56 57 44 John Ortega COB Clothestime Inc. 57 58 45 Raymond A. DeAngelo VCOB, CEO Clothestime Inc. 58 8 47 James M. Peters COB,P,CEO J M Peters Co. Inc. 59 50 59 Ronald R. White COB,P,CEO Centennial Group Inc. Calif. 60 93 27 Richard Lipeles SVP Pacficare Health 61 37 NA Kathy Bronstein EVP Wet Seal Inc. 62 60 17 John P. Wareham VP Beckman Instruments Inc. 63 132 NA Gene Lu COB,P,CEO Advanced Logic Research Inc. 64 38 98 Wayne Lowell CFO Pacificare Health 65 NA NA R. Bruce Andrews P,CEO Nationwide Health Properties 66 45 42 George E. Reinhardt SVP,CFO Bergen Brunswig Corp. 67 3 2 Christopher C. Gibbs EVP,COO J M Peters Co. Inc. 68 240 NA Charles L. Burwell EVP Tricare Inc. 69 78 78 Stephen W. Prough P,COO Westcorp 70 104 NA Peter Churm COB Furon Co. 71 68 36 Carl N. Karcher COB,CEO Carl Karcher Enterprises Inc. 72 54 NA J. B. Crowell P Eldorado Bancorp 73 NA NA Barry J. Southam SVP Wahlco Environmental 74 70 NA Henry N. Huta P,CEO Wahlco Environmental 75 280 NA Anthony J. Turek SVP DVI Financial Corp. 76 104 NA Richard B. Dozier SO Nichols Institute 77 336 56 Patrick E. Paddon P,CEO Amplicon 78 NA NA Javier Rovalo VP SPI Pharmaceuticals Inc. 79 30 NA Roger L. Kringen COB,P,CEO Unionfed Financial Corp. 80 75 57 Maurice L. McAlister COB Downey Savings & Loan Assn. 81 32 25 W. Richard Ulmer SVP,SO Allergan 82 94 NA Louis A. Delmonico COB,P,CEO PDA Engineering 83 194 71 H. William Bridgford COB Bridgford Foods 83 194 72 Allan L. Bridgford P Bridgford Foods 83 194 73 Hugh H. Bridgford VP Bridgford Foods 83 194 74 Robert E. Schulze EVP Bridgford Foods 87 43 95 Loren B. Shook SO Community Psychiatric Centers 88 42 66 Richard L. Conte P,CFO Community Psychiatric Centers 89 39 NA Richard S. Lewis EVP,SO Unionfed Financial Corp. 90 56 43 Michael P. DeAngelo Former C,CEO Clothestime Inc. **91 NA 50 Wm. James Nicol SVP,CFO,TRE Quantum Health Resources 92 81 NA John B. Joseph VCOB,SEVP Centennial Group Inc. Calif. 93 36 41 James Carroll P,CEO Wynn’s International Inc. 94 69 82 Robert B. McKnight COB,P,CEO Quiksilver Inc. 95 118 NA John T. Grush SVP US Facilities Corp. 96 NA NA Peter N. Hellman SVP Presley Cos. 97 232 NA Lawrence Wasserman SVP,CFO Tricare Inc. 98 135 51 Kenneth C. Campbell SO Archive Corp. 99 82 70 Landon M. Exley P,CEO Pacesetter Homes Inc. 100 242 NA Douglas L. Bockus SVP US Facilities Corp.

Total % chg. 1991 % chg. 1991 from Salary from Name compen. ’90 & bonus ’90 Milan Panic $6,143,681 834 $768,681 34 Leslie G. McCraw $3,369,552 123 $1,546,211 72 Gerald M. Glenn $3,273,572 89 $720,705 12 Hugh K. Coble $2,811,859 161 $767,725 42 Safi U. Qureshey $2,811,000 258 $2,792,000 266 Thomas C. K. Yuen $2,809,900 262 $2,792,000 272 Vincent L. Kontny $2,339,786 17 $1,038,732 46 Adam Jerney $1,968,303 455 $428,999 24 Amin J. Khoury $1,882,125 336 $129,000 -70 Wade H. Cable $1,738,807 NA $1,738,807 NA Bruce C. Edwards $1,556,100 453 $692,000 160 John C. Warner $1,510,667 11 $299,000 -52 David G. Kirkey $1,441,647 351 $229,247 23 Gavin S. Herbert $1,404,499 27 $882,471 2 Ronald R. Foell $1,190,662 0 $1,190,662 0 John C. Olson $1,113,300 382 $488,000 122 David L. Kelly $1,031,631 230 $238,631 65 Arthur E. Svendsen $1,003,071 0 $1,003,071 0 Wai S. Szeto $967,800 NA $446,000 NA Douglas L. Drumwright $940,000 NA $940,000 NA Charles S. Mack $940,000 NA $940,000 NA James W. Conte $938,640 -23 $900,000 -25 John Giordani $930,119 323 $230,169 9 Terry Hartshorn $905,877 44 $905,877 46 William C. Shepherd $806,868 -31 $712,993 13 Douglas H. Stickney $792,886 NA $191,011 NA Pat Vitacolonna $790,604 65 $358,000 51 Jack W. Brown $752,397 284 $175,058 - 1 Robert E. Martini $731,909 -12 $676,421 -19 Robert Gumbiner $724,000 -38 $707,000 -39 James T. Richardson $700,197 325 $225,047 37 Robert F. Byrnes $690,536 NA $216,000 NA Alan Hoops $666,867 38 $666,867 40 L. C. Albertson Jr. $664,810 NA $664,810 NA Ken Chilvers $611,624 -23 $611,624 -23 Craig T. Davenport $583,334 NA $216,000 NA Albert L. Nichols $579,655 -61 $579,655 27 Jerome W. Cwiertnia $543,701 -29 $543,701 25 Jeremy M. Jones $542,853 NA $542,853 NA Roger W. Johnson $538,492 -44 $538,492 -8 Louis T. Rosso $535,224 -34 $535,224 24 George Boyadjieff $533,120 -14 $318,000 -9 Ernest S. Rady $530,682 50 $390,432 10 David M. Siegel $515,447 NA $515,447 NA D. Howard Lewis $505,803 53 $424,893 42 Robert C. Bishop $484,292 16 $355,914 -1 Richard M. Haugen $473,831 32 $378,525 23 George Kadonada $473,500 16 $473,500 16 Dwight A. Steffensen $468,824 -11 $468,824 -11 W. Clay Matthews $468,320 15 $370,948 -9 E. Morgan Massey $466,883 NA $466,883 NA Westcott W. Price $464,104 13 $439,000 8 Ronald N. Tapper $463,129 -4 $363,701 3 Robert C. Sala $462,669 NA $185,327 NA Norman Abramson $460,804 7 $366,293 10 John Ortega $459,338 7 $459,338 7 Raymond A. DeAngelo $459,182 7 $459,182 7 James M. Peters $457,750 -67 $457,750 -67 Ronald R. White $450,000 0 $450,000 0 Richard Lipeles $449,160 47 $449,160 51 Kathy Bronstein $444,074 -19 $444,074 -19 John P. Wareham $442,500 5 $442,500 69 Gene Lu $441,456 87 $441,456 87 Wayne Lowell $427,987 -21 $427,987 43 R. Bruce Andrews $414,375 NA $375,000 NA George E. Reinhardt $413,558 -14 $413,558 -14 Christopher C. Gibbs $411,332 -77 $411,332 -77 Charles L. Burwell $410,770 174 $154,520 3 Stephen W. Prough $404,432 14 $390,432 10 Peter Churm $400,375 -31 $400,375 -31 Carl N. Karcher $400,048 0 $400,048 0 J. B. Crowell $397,646 -8 $316,986 -22 Barry J. Southam $391,465 NA $391,465 NA Henry N. Huta $389,749 0 $389,749 0 Anthony J. Turek $387,951 206 $157,951 25 Richard B. Dozier $386,150 37 $212,029 7 Patrick E. Paddon $375,000 275 $375,000 275 Javier Rovalo $370,344 NA $206,408 NA Roger L. Kringen $367,550 -41 $247,908 -21 Maurice L. McAlister $361,851 -1 $361,851 -1 W. Richard Ulmer $361,143 -41 $361,143 -3 Louis A. Delmonico $360,644 19 $351,230 18 H. William Bridgford $359,600 93 $359,600 93 Allan L. Bridgford $359,600 93 $359,600 93 Hugh H. Bridgford $359,600 93 $359,600 93 Robert E. Schulze $359,600 93 $359,600 93 Loren B. Shook $357,932 -28 $300,000 -33 Richard L. Conte $354,041 -29 $300,000 -33 Richard S. Lewis $353,334 -34 $142,500 -51 Michael P. DeAngelo $351,902 -18 $351,902 -18 Wm. James Nicol $350,838 NA $160,511 NA John B. Joseph $350,000 0 $350,000 0 James Carroll $349,000 -40 $349,000 -40 Robert B. McKnight $345,000 -12 $345,000 -12 John T. Grush $343,985 34 $343,985 34 Peter N. Hellman $342,711 NA $342,711 NA Lawrence Wasserman $338,490 115 $167,240 15 Kenneth C. Campbell $332,226 41 $194,646 -1 Landon M. Exley $324,000 -6 $324,000 -5 Douglas L. Bockus $323,843 118 $323,843 118

Stock Stock Other Name options awards compen. Milan Panic $0 $5,375,000 $0 Leslie G. McCraw $856,765 $899,238 $67,338 Gerald M. Glenn $1,984,198 $457,443 $111,226 Hugh K. Coble $1,601,323 $407,625 $35,186 Safi U. Qureshey $0 $0 $19,000 Thomas C. K. Yuen $0 $0 $17,900 Vincent L. Kontny $591,695 $664,804 $44,555 Adam Jerney $1,534,940 $0 $4,364 Amin J. Khoury $1,753,125 $0 $0 Wade H. Cable $0 $0 $0 Bruce C. Edwards $845,000 $0 $19,100 John C. Warner $892,667 $0 $319,000 David G. Kirkey $1,212,400 $0 $0 Gavin S. Herbert $26,649 $495,379 $0 Ronald R. Foell $0 $0 $0 John C. Olson $609,700 $0 $15,600 David L. Kelly $793,000 $0 $0 Arthur E. Svendsen $0 $0 $0 Wai S. Szeto $506,600 $0 $15,200 Douglas L. Drumwright $0 $0 $0 Charles S. Mack $0 $0 $0 James W. Conte $0 $0 $38,640 John Giordani $699,950 $0 $0 Terry Hartshorn $0 $0 $0 William C. Shepherd $93,875 $0 $0 Douglas H. Stickney $601,875 $0 $0 Pat Vitacolonna $407,000 $8,868 $16,736 Jack W. Brown $577,339 $0 $0 Robert E. Martini $0 $0 $55,488 Robert Gumbiner $0 $0 $17,000 James T. Richardson $422,800 $0 $52,350 Robert F. Byrnes $474,536 $0 $0 Alan Hoops $0 $0 $0 L. C. Albertson Jr. $0 $0 $0 Ken Chilvers $0 $0 $0 Craig T. Davenport $367,334 $0 $0 Albert L. Nichols $0 $0 $0 Jerome W. Cwiertnia $0 $0 $0 Jeremy M. Jones $0 $0 $0 Roger W. Johnson $0 $0 $0 Louis T. Rosso $0 $0 $0 George Boyadjieff $0 $15,120 $200,000 Ernest S. Rady $140,250 $0 $0 David M. Siegel $0 $0 $0 D. Howard Lewis $80,910 $0 $0 Robert C. Bishop $0 $128,378 $0 Richard M. Haugen $0 $95,306 $0 George Kadonada $0 $0 $0 Dwight A. Steffensen $0 $0 $0 W. Clay Matthews $0 $0 $97,372 E. Morgan Massey $0 $0 $0 Westcott W. Price $0 $8,368 $16,736 Ronald N. Tapper $99,428 $0 $0 Robert C. Sala $277,342 $0 $0 Norman Abramson $94,511 $0 $0 John Ortega $0 $0 $0 Raymond A. DeAngelo $0 $0 $0 James M. Peters $0 $0 $0 Ronald R. White $0 $0 $0 Richard Lipeles $0 $0 $0 Kathy Bronstein $0 $0 $0 John P. Wareham $0 $0 $0 Gene Lu $0 $0 $0 Wayne Lowell $0 $ 0 $0 R. Bruce Andrews $39,375 $0 $0 George E. Reinhardt $0 $0 $0 Christopher C. Gibbs $0 $0 $0 Charles L. Burwell $256,250 $0 $0 Stephen W. Prough $14,000 $0 $0 Peter Churm $0 $0 $0 Carl N. Karcher $0 $0 $0 J. B. Crowell $69,460 $0 $11,200 Barry J. Southam $0 $0 $0 Henry N. Huta $0 $0 $0 Anthony J. Turek $230,000 $0 $0 Richard B. Dozier $174,121 $0 $0 Patrick E. Paddon $0 $0 $0 Javier Rovalo $163,936 $0 $0 Roger L. Kringen $0 $0 $119,642 Maurice L. McAlister $0 $0 $0 W. Richard Ulmer $0 $0 $0 Louis A. Delmonico $0 $0 $9,414 H. William Bridgford $0 $0 $0 Allan L. Bridgford $0 $0 $0 Hugh H. Bridgford $0 $0 $0 Robert E. Schulze $0 $0 $0 Loren B. Shook $0 $0 $57,932 Richard L. Conte $0 $0 $54,041 Richard S. Lewis $0 $0 $210,834 Michael P. DeAngelo $0 $0 $0 Wm. James Nicol $139,848 $0 $50,479 John B. Joseph $0 $0 $0 James Carroll $0 $0 $0 Robert B. McKnight $0 $0 $0 John T. Grush $0 $0 $0 Peter N. Hellman $0 $0 $0 Lawrence Wasserman $171,250 $0 $0 Kenneth C. Campbell $102,580 $35,000 $0 Landon M. Exley $0 $0 $0 Douglas L. Bockus $0 $0 $0

* Adam Jerney was employed at SPI’s parent, ICN Pharmaceuticals, in 1989 and 1990. ** W.J. Nicol was employed at Comprehensive Care Corp. in 1989.

Pay Cuts, Pay Hikes

In a recessionary year, there were winners and losers among Orange County’s corporate chairmen and presidents. Below is a list of the top executives with the biggest cuts and boosts in their cash compensation and bonus pay.

Name Title Company LOSERS Roland G. Matthews COB,CEO Diceon Electronics Inc. Amin J. Khoury COB,CEO,SEC,TRE BE Avionics Inc. James M. Peters COB,P,CEO J M Peters Company Inc. John C. Warner Former COB, CEO Quiksilver Inc. James Carroll P,CEO Wynn’s International Inc. Robert Gumbiner CEO FHP International Corp. Jim Farooquee P,CEO CMS Enhancements Inc. James W. Conte COB,P,CEO Community Psychiatric Centers Bernard Abrams COB,CEO Three D Departments Inc. Dennis G. Danko P,CEO ReadiCare Inc. WINNERS Patrick E. Paddon P,CEO Amplicon Safi U. Qureshey COB, P AST Research Inc. H. William Bridgford COB Bridgford Foods Allan L. Bridgford P Bridgford Foods Gene Lu COB,P,CEO Advanced Logic Research Leslie G. McGraw P,COB,CEO Fluor Corp. David L. Higgins P,COB,CEO DVI Financial Corp. Terry Hartshorn P,CEO PacifiCare Health D. Howard Lewis COB,P,CEO Archive Corp. Thomas A. Galantowicz P Newport Corp.

Percent Percent 1991 change 1990 1991 change Last total from total salary from Name compensation 1990 compensation and bonus 1990 LOSERS Matthews $65,596 -72 $237,033 $60,759 -74 Khoury $1,882,125 336 $432,000 $129,000 -70 Peters $457,750 -67 $1,403,240 $457,750 -67 Warner $1,510,667 11 $1,359,667 $299,000 -52 Carroll $349,000 -40 $576,980 $349,000 -40 Gumbiner $724,000 -38 $1,168,000 $707,000 -39 Farooquee $160,700 -36 $249,774 $160,700 -36 Conte $938,640 -23 $1,214,264 $900,000 -25 Abrams $200,000 -25 $265,000 $200,000 -25 Danko $168,281 -23 $218,582 $164,000 -23 WINNERS Paddon $375,000 275 $100,000 $375,000 275 Qureshey $2,811,000 258 785,600 $2,792,000 266 Bridgford $359,600 93 $186,500 $359,600 93 Bridgford $359,600 93 $186,500 $359,600 93 Lu $441,456 87 $236,184 $441,456 87 McGraw $3,369,552 123 $1,510,613 $1,546,211 72 Higgins $298,055 70 $175,243 $298,0551 70 Hartshorn $905,877 44 627,060 $905,877 46 Lewis $505,803 53 330,256 $424,893 42 Galantowicz $249,135 37 $181,916 $245,000 38

1990 Last salary Name and bonus LOSERS Matthews $237,033 Khoury $432,000 Peters $1,403,240 Warner $618,000 Carroll $576,980 Gumbiner $1,164,000 Farooquee $249,774 Conte $1,200,000 Abrams $265,000 Danko $212,874 WINNERS Paddon $100,000 Qureshey $762,200 Bridgford $186,500 Bridgford $186,500 Lu $236,184 McGraw $898,906 Higgins $175,243 Hartshorn $620,340 Lewis $299,915 Galantowicz $178,000

Performance and Pay

The following table ranks Orange County’s largest companies according to their 1991 performance and shows the compensation of their top executives, compared to their industry peers. It also shows companies’ longer-term performance and compares executive compensation that includes longer-term incentives.

1-year performance Top rank Company executive 1 AST Research Inc. Safi U. Qureshey 2 Allergan Gavin S. Herbert 3 Beckman Instruments Inc. Louis T. Rosso 4 FHP International Corp. Robert Gumbiner 5 Fluor Corp. Leslie G. McCraw 6 Carl Karcher Enterprises Inc. Carl N. Karcher 7 Downey Savings & Loan Assn. Maurice L. McAlister 8 Bergen Brunswig Corp. Robert E. Martini 9 Western Digital Corp. Roger W. Johnson

1-year 1991 7-year performance Top cash Industry performance rank Company compensation median rank 1 AST Research Inc. $2,792,000 $504,660 1 2 Allergan $882,471 $504,660 2 3 Beckman Instruments $535,224 $504,660 5 Inc. 4 FHP International $707,000 $840,740 3 Corp. 5 Fluor Corp. $1,546,211 $1,023,775 4 6 Carl Karcher $400,048 $471,386 8 Enterprises Inc. 7 Downey Savings & $361,851 $597,344 7 Loan Assn. 8 Bergen Brunswig $676,421 $826,733 6 Corp. 9 Western Digital $538,492 $504,660 9 Corp.

1991 1991 pay plus Top cash Industry long-term Company compensation median incentives median AST Research Inc. $2,792,000 $504,660 $2,811,000 $588,640 Allergan $882,471 $504,660 $1,404,499 $588,640 Beckman Instruments $535,224 $504,660 $535,224 $588,640 Inc. FHP International $707,000 $840,740 $724,000 $927,924 Corp. Fluor Corp. $1,546,211 $1,023,775 $3,369,552 $1,295,711 Carl Karcher $400,048 $471,386 $400,048 $491,743 Enterprises Inc. Downey Savings & $361,851 $597,344 $361,851 $749,252 Loan Assn. Bergen Brunswig $676,421 $826,733 $731,909 $1,009,417 Corp. Western Digital $538,492 $504,660 $538,492 $588,640 Corp.

Industry Company AST Research Inc. Allergan Beckman Instruments Inc. FHP International Corp. Fluor Corp. Carl Karcher Enterprises Inc. Downey Savings & Loan Assn. Bergen Brunswig Corp. Western Digital Corp.

About This Table

One-Year Performance Rank

This shows company performance measured by stock price appreciation plus dividend payout in 1991. Statistics were compiled by Graef S. Crystal, a UC Berkeley professor. To eliminate the effect of temporary swings in market prices, he considered stock gains for six time periods in the year. He threw out the highest and lowest numbers and averaged the remaining four figures to come up with an annual average.

1991 Cash Compensation and Industry Median

This columns shows executives’ salary and bonuses compared to median pay of top executives at similar companies. Median pay was computed by compiling compensation information revealed in the proxy statements of 150 of California’s largest publicly held corporations. The corporations were divided into three groups--heavy industry, financial/services and wholesale/retail--and two size categories--those with more than $1 billion in annual sales and those with less than $1 billion in sales. The median reflects the salary that is halfway between the highest and lowest numbers for other companies of similar size in the same industry group.

Seven-Year Performance Rank

This shows how companies performed over a seven-year period. Crystal examined total shareholder returns--dividends plus gains in market value--for the past seven years. In cases where seven years of stock performance did not exist, he averaged performance over the available time period and used the average for the other years.

1991 Pay Plus Long-Term Incentives

To provide a measure of longer-term executive performance, a total compensation figure is shown, which includes options exercised and stock awards received by managers during 1991. These incentives, whose value accumulates over several years, are meant to compensate executives for longer-term performance. Total compensation may be inflated in one year for managers who recently exercised options.

Orange County’s Top 100, Los Angeles Times