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INTUIT GENEROUS WITH EXEC BONUSES

Brad Smith, IntuitIntuit CEO Brad Smith had a good month as directors approved a nearly 19-percent raise in base salary for the year ending April 30 and a 46-percent increase in bonus for fiscal 2010. We won't know complete 2010 compensation until proxies are issued later this year, listing any stock and option awards. Smith's base jumps to $950,000 for fiscal 2011, up from $800,000 for the most recently ended year.
Of course, the impact of rise has other implications as target bonuses are normally calculated as a percentage of base salary so that should raise the 2011 bonus potential. His bonus for 2010 was $1.43 million, up from $828,000 the prior year. Since I have written a lot about the possible impact of the investment of Relational Investors on the company, it's only fair to say it looks like Smith has done well. After Relational bought stock and threatened a proxy feet for board seats, Intuit agreed to put partner David Batchelder on the board late last year. It's a standard tactic for the investment firm which has a reputation of ousting CEOs. The message appears to be things are fine for Smith. None of the other named executives got salary increases, but all got bonus increases. CFO Neil Williams, had his base cut to $625,000 from $600,000, but his bonus was increased to $600,000 from $390,000 for fiscal 2009. Kiran Patel, EVP and GM of the small business group got a $985,000 bonus, up from $550,000 the prior year. Alexander Linter, who holds the same position with the Global Business Division, saw his bonus rise to $470,000 from $270,000. Sassan Goodarzi, head of the Financial Services Division, drew a bonus of $470,000, up from $290,000.
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