DXC has released the full annual compensation of its five named executive officers, showing that one executive’s total compensation for fiscal 2023 exceeded the sum total of the other four executives and that four of the five saw significant cuts over their fiscal 2022 compensation.
Like many tech companies over the past year, DXC Technology’s financial performance has suffered. The company in May reported full fiscal year revenue of $14.43 billion, down 11.3 percent over the $16.27 billion it reported for fiscal 2022. The year also saw net income turn to a net loss, with a loss of $566 million in fiscal 2023 compared to a net income of $736 million in fiscal 2022.
DXC, however, called fiscal 2023 a year in which the Ashburn, Va.-based company “delivered consistent financial performance with a focus on establishing a sustainable financial foundation,” noting that the company’s organic revenue fell only 2.7 percent while it reduced its debt levels by $565 million to $4.4 billion and had a TSR (total shareholder return) performance that far outpaced the S&P 500 and the GICS 4510 software and services industry companies.
Despite the positive spin on fiscal 2023, the year was one in which four of the company’s five named executive officers saw a significant drop in their total compensation. The fifth, Christopher Drumgoole, joined the top executive rank in 2023.
[Related: DXC Earnings Report: Acquisition Talks Still On, Revenue Still Slides ]
According to the Schedule 14A proxy statement DXC filed June 12 with the U.S. Securities And Exchange Commission, 92 percent of DXC’s CEO compensation is variable and at risk, while the same can be said of an average of 81 percent of the compensation of the other named executive officers.
Of the variable portion of their compensation, the majority of long-term incentive equity awards are performance-based, while 60 percent short-term cash incentives were based on adjusted EBIT (earnings before interest and taxes) and 40 percent on organic revenue growth.
In fiscal 2023, under the annual cash incentive plan, DXC’s compensation committee determined that the company’s achievements for adjusted EBIT margin percentage was about 90 percent of target, and organic revenue growth percentage was about 97 percent of target, which DXC said resulted in a calculated payout of about 60 percent of target, which caused a significant drop in total compensation for the named executive officers.
How did DXC’s five named executive officers fare in fiscal 2023 in terms of compensation? Click through the slideshow for more details.
William Deckelman
Position: EVP and General Counsel
2023 total compensation: $3,294,310
Deckelman serves as principal counsel and advisor to DXC’s senior leadership and its board of directors, and has global responsibility for all legal, privacy, contracting, mergers and acquisitions, litigation and compliance activities, along with government and regulatory affairs. He previously held the same position at CSC, which in 2017 was merged with HPE’s enterprise services business to form DXC.
For the year, Deckelman received a salary of $576,923, down 7 percent over his 2022 salary of $619,231, and below his 2021 salary of $600,000. Deckelman also received stock awards of $2.3 million, down from $3.1 million/ non-equity incentive plan compensation of $396,000, down from $495,000; and other compensation of $30,161, up from $24,462.
Deckelman’s total compensation for 2023 was $3.3 million, down 21 percent over his 2022 compensation of $4.2 million and below the $3.8 million he received in 2021.
Christopher Drumgoole
Position: Global Lead, Cloud Infrastructure & ITO
2023 total compensation: $3,476,935
Drumgoole during fiscal 2023 served as executive vice president and chief operating officer for DXC, where he managed day-to-day business operations and support management initiatives related to the company’s transformation journey. However, during fiscal 2024 he became the global lead for cloud and infrastructure services where he heads teams developing, marketing, and delivering cloud and infrastructure services to customers. He is also responsible for DXC’s public sector business.
Drumgoole in fiscal 2023 received a salary of $673,077, stock awards of $2.3 million, non-equity incentive plan compensation of $462,000, and other compensation of $33,284, giving him a grand total of $3.5 million.
Because this is Drumgoole’s first year as a named executive officer, there are no prior year comparisons for his compensation.
Mary Finch
Position: EVP, Chief Human Resources Officer and Global Marketing Lead
2023 total compensation: $3,919,295
Finch, a three-year-plus DXC veteran, received her current title in fiscal 2024, although she has been a DXC named executive officer for at least the past three years. In her role, Finch leads human resources and employee engagement globally, including talent development and training; employee retention and recruitment; policy, benefits and compensation; workforce development and organization effectiveness; staffing and training; and global inclusion and diversity. Prior to joining DSC in October of 2019, she held a similar role at AECOM.
For fiscal 2023, Finch received a salary of $637,077, a drop of nearly 7 percent from the $722,436 she received in fiscal 2022. Her stock awards amounted to $2.8 million, down from $3.7 million. Finch also received non-equity incentive plan compensation of $462,000, down from $577,500, and other compensation of $13,903, up from $10,692.
That brought her total compensation to $5.0 million, which was about 20 percent less than the $5.0 million she made in 2022, and nearly 30 percent below her total fiscal 2021 compensation.
Kenneth P. Sharp
Position: Former EVP and CFO
2023 total compensation: $6,125,834
Sharp, who in late 2020 joined DXC as CFO after finance stints in Northrop Grumman and Orbital ATK, left DXC as of June 1. According to the company, Sharp stepped down for personal reasons, and will remain with DXC until September 15 to ensure a smooth transition. He was succeeded by Robert Del Bene as executive vice president and CFO as of June 15.
For fiscal 2023, Sharp received a salary of $690,865, down 4 percent from the $722,436 he received in fiscal 2022. Sharp also received stock awards of $4.88 million, down slightly from last year’s $4.91 million; non-equity incentive plan compensation of $543,750, down from $577,500; and other compensation of $13.559, down from $10,692.
Sharp’s total fiscal 2023 compensation of $6.1 million was nearly equal to the $6.2 million he received in fiscal 2022.
Michael Salvino
Position: Chairman, President, and CE O
2023 total compensation: $20,317,972
Salvino, the face of DXC at major conferences and on the quarterly financial conference calls, became CEO of the company in September 2019. He joined the DXC board of directors in May of 2019, and started serving as chairman in July of 2022. Prior to joining DXC in 2019, he spent three years at Carrick Capital Partners, and before that was a group chief executive at Accenture Operations.
Salvino in fiscal 2023 received a salary of $1.30 million, down about 5 percent from the $1.36 million he received in fiscal 2022 but better than the $1.25 million he received in fiscal 2021. Salvino also received stock awards of $17.1 million, down a significant 32 percent over the $25.1 million he received in fiscal 2022 but better than the $15.3 million he received in fiscal 2021. He also received non-equity incentive plan compensation of $1.6 million, down from $2.0 million in fiscal 2022 and considerably down from the $5.0 million he received in 2021. He also receive other compensation of $269,721, up from last year’s $238,880.
Salvino’s total compensation for fiscal 2023 was $20.3 million, down 29 percent from last year’s $28.7 million.
Despite the drop in total compensation from last year, Salvino’s compensation was still nearly a quarter higher than the sum total of the compensation of the other four named executive officers.
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