Varco Chief’s Pay Is Cut 26% in 1998

Varco International Chairman and Chief Executive George Boyadjieff saw his 1998 compensation fall 26% because of a sharp reduction in his bonus.

The top official at the Orange-based provider of oil-field services received a 5% increase in his base salary, to $580,000. But his bonus, which is based on the company’s profitability and the performance of its stock, fell 43%, to $587,719.

The figures were disclosed in the company’s annual proxy statement filed with the Securities and Exchange Commission.

Boyadjieff, who also is Varco’s chief technology officer, also received $11,751 in retirement and life-insurance benefits, and options to buy 37,520 shares of Varco stock.

The decline in his total take-home pay came as Varco’s 1998 profits rose 21%, to $60.3 million. Its stock price, however, plunged 64% over the same period, closing the year at $7.75. It has since rebounded 34%, closing Tuesday at $10.38, up 13 cents, in New York Stock Exchange trading.