The element of executive pay that generates the most controversy is exercising stock options. Typically, executives promised the right to buy shares at a set price exercise that right when the price of the shares has gone up. That can result in instant riches. This chart lists the 20 executives at California's 100 biggest publicly-held companies who exercised the most valuable stock options in 1993.

Executive Company Title Michael D. Eisner Walt Disney Co. CEO,COB John T. Chambers Cisco Systems Inc. SVP James C. Morgan Applied Materials COB, CEO Richard A. Nunis Walt Disney Co. CHMN Richard Previte Advanced Micro PRS Devices Inc. Eli Broad Sunamerica Inc. CHMN, PRS, CEO David H. Ring Cisco Systems Inc. VP Craig R. Barrett Intel Corp. EVP, COO Orion L. Hoch Litton Industries Inc. CHRMN Roy E. Disney Walt Disney Co. VCHMN Frank C. Gill Intel Corp. SVP Frank J. Marshall Cisco Systems Inc. VP Geoffrey W. Squire Oracle Systems Corp. EVP Peter S. Cross Synoptics VP Communications Inc. William J. Ruehle Synoptics VP, CFO Communications Inc. David L. House Intel Corp. SVP Edward R. McCracken Silicon Graphics Inc. PRS, CEO Anthony B. Holbrook Advanced Micro VCHMN Devices Inc. Koichi Nishimura Solectron Corp. PRS, CEO Laurence R. Hootnick Maxtor Corp. PRS, CEO

Options Executive exercised Michael D. Eisner $202,260,592 John T. Chambers $12,363,969 James C. Morgan $11,323,788 Richard A. Nunis $9,204,415 Richard Previte $8,726,420 Eli Broad $8,241,614 David H. Ring $7,338,761 Craig R. Barrett $5,931,300 Orion L. Hoch $5,262,844 Roy E. Disney $4,620,000 Frank C. Gill $4,562,700 Frank J. Marshall $4,437,500 Geoffrey W. Squire $3,886,563 Peter S. Cross $3,580,083 William J. Ruehle $3,365,632 David L. House $3,058,700 Edward R. McCracken $3,014,878 Anthony B. Holbrook $2,846,164 Koichi Nishimura $2,790,000 Laurence R. Hootnick $2,754,000

Source: STAR Services

Footnotes and Abbreviations

Calculated by the Black-Scholes method. All other companies calculated stock option values based on the 5% method.

NA Not available.

CEO Chief executive officer

CFO Chief financial officer

COB Chairman of the board

CO-COB Co-chairman of the board

COO Chief operating officer

CTO Chief technology officer

DIR Director

EVP Executive vice president

P President

P-OPS President of operations

SVP Senior vice president

VCOB Vice chairman of the board

VP Vice president

For the Record Los Angeles Times Wednesday June 8, 1994 Home Edition Business Part D Page 2 Column 3 Financial Desk 2 inches; 64 words Type of Material: Correction Executive pay--Charts in the special report on executive pay published Sunday, May 29, misstated the gains realized by executives at Advanced Micro Devices Inc. from the exercise of stock options. W.J. Sanders, chairman and chief executive, exercised $8.28 million worth of options in 1993. The company's president, Richard Previte, reported $2.85 million in stock option gains. Stock gains for Vice Chairman Anthony B. Holbrook totaled $2.42 million.
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