Missed Goals Slash ’98 Pay of Rockwell CEO

Rockwell International Corp.’s chief executive took a 47% cut in compensation in fiscal 1998 as the maker of factory automation equipment missed some of its financial targets, a regulatory filing disclosed Tuesday.

Chairman and Chief Executive Don Davis’ pay fell to $796,500 for the year ended Sept. 30 from $1.5 million because he didn’t get a bonus, according to a report filed with the Securities and Exchange Commission.

Three other top executives also did not receive bonuses, the SEC report showed.

Davis’ salary rose 21% to $775,000 from $641,667. He also received 200,000 options to purchase the stock at $48.12 a share, with an adjusted value of $3.24 million, according to the SEC filing.

But in 1997, Davis had received an $875,000 bonus, including nearly $375,000 in shares of Rockwell’s restricted stock.

Davis took over as CEO in October 1997, replacing Donald Beall. The Costa Mesa-based company has since recorded heavy restructuring charges and decided to spin off its money-losing semiconductor unit. The chip business was hurt by slumping sales and a battle with 3Com Corp. over a modem standard.

In fiscal 1998, Rockwell had a loss of $427 million, or $2.16 a share, compared with net income of $644 million, or $2.97 a share.

Other executives who did not receive bonuses were W. Michael Barnes, vice president of finance; William Calise, general counsel; and Dwight Decker, head of the semiconductor unit.

Jodie K. Glore, former president and chief operating officer of Rockwell’s automation unit, was the only corporate officer to get a bonus, according to the filing. Glore, who resigned in October, received $240,000 in addition to his $415,000 annual salary.

Glore will continue to receive his salary and other perks until October 1999.

Beall, who is still on Rockwell’s board, will continue to be paid $600,000 a year and other compensation through 1999.