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LAWSON EXECS GET HANDSOME 2010 PAY

Looking at the double-digit compensation increases given Lawson Software execs I figured the reason couldn't have been the 8.2-percent decline in net income on a 2.8 percent drop in revenue for the year ended May 31. It had to reflect gross margins which rose to 56.4 percent for FY 2010 from 51.6 a year earlier and produced a nice rise in operating income. In any case, CEO Harry Debes received $4.89 million in compensation up 37.9 percent from $3.55 million in FY 2009. CFO Stefan Schulz pulled down $1.15 million, more than double his prior $530,219. Similarly, Colin Balmforth, EVP of general industries and global support, more than doubled his pay to $1.24 million from $558,213 while Dean Hager, EVP of S3 Industries, pulled in $1.28 million, 32.7 percent higher than last year's $961.479.

This was despite the fact that there were no cash bonuses and in that category Debes had $613,844 last year; Schulz, $85,605; Balmforth, $21,574 and Hager, $184,018. Much of the increases came from the non-equity incentives with Debes drawing $812,500 from that source, up from $41,308 the prior year. And except for Debes, these guys got decent boosts in their base salary. Balmforth's base rose to $300,000, a 20-percent increase, and Hager got $320,000, up 15.8 percent. This probably follows the compensation policy endorsed in the Marx Brothers' film, "A Night at the Opera." "In all that time, you've done nothing but draw a very handsome salary." "You think that's nothing? How many men do you think draw a handsome salary? You can count them on the fingers of one hand, my good woman." To be fair (why start now?), the company is shifting gears with its January purchase of HealthVision. One help to margins was probably that there were 20 deals of more than $1 million in license fees in FY 2010, compared to nine the prior year.

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