DXC Technology shareholders seem to have expressed frustration with steadily falling revenue since 2018 by rejecting the solution provider’s proposed executive compensation.
DXC Friday reported in an SEC filing that shareholders voted 105.35 million shares against the company’s proposed executive compensation for its named executives versus 95.94 million shares for and 5.40 million shares abstained. Another 17.64 shares were listed as broker non-votes.
DXC was formed in April 2017 from a merger of CSC and Hewlett Packard Enterprise’s enterprise services business.
The vote was held on August 17 during DXC Technology’s 2021 annual stockholders meeting.
DXC officials were not immediately available for comment ahead of the publication deadline.
DXC has had a tough last few years, with revenue falling on year-by-year basis.
The company in May reported fiscal 2021 revenue of US$17.73 billion, down 9.4 percent from the US$19.58 billion it reported for fiscal 2020. Fiscal 2019 revenue was US$20.75 billion, and peaked in fiscal 2018 at US$24.56 billion.
During that same time, the company’s earnings per share fell from US$6.04 on a GAAP basis and US$7.94 on a non-GAAP basis in fiscal 2018 to a GAAP loss of 59 US cents and non-GAAP income of US$2.43 in fiscal 2021.
Meanwhile, executive compensation for DXC’s named executives has grown quickly, with many of the top executives’ compensation growing by well over 50 percent between fiscal 2020 and 2021.
In its Schedule 14A filed with the SEC on July 6, 2021, Michael Salvino, DXC president and CEO, received total compensation for Fiscal 2021 of US$21.73 million, up over 63 percent over the US$13.32 million he received for fiscal 2020.
That represents his total compensation package including salary, bonus, stock awards, and non-executive plan compensation.
Mary Finch, executive vice president and chief human resources officer, in fiscal 2021 received total compensation of US$5.58 million, up 33 percent from fiscal 2020’s US$4.20 million.
Vinod Bagal, executive vice president for global delivery, was compensated with US$4.53 million in fiscal 2021, up 52 percent over the prior year’s compensation of US$2.98 million.