Black & Decker alum hits it big at

Galli, CFO getbonuses, options


March 17, 2000|By BLOOMBERG NEWS

SEATTLE -- Inc. awarded stock options that could be worth a combined $2 billion in two decades to two top executives who joined the biggest Internet retailer last year.

President Joe Galli, formerly with toolmaker Black & Decker Corp. in Towson, and Chief Financial Officer Warren Jenson, hired from Delta Air Lines Inc., received cash signing bonuses of $7.9 million and $7.4 million, respectively.

Galli, 41, received options to purchase 3.92 million shares -- which would be worth $1.3 billion if the stock rises 10 percent a year through 2019, according to's proxy filing with the Securities and Exchange Commission.

Jenson, 43, got options for 2 million shares, which could be worth $745 million in 20 years.

Galli, who also was named chief operating officer when he joined in June, received $2.9 million of his signing bonus last year. The rest will be paid in June this year and next.

His incentive package includes options to purchase 1.47 million shares through 2009, and 2.45 million shares from 2009 through 2019 at an exercise price of $57.95 a share. Galli will get an annual salary of $200,000.

Jenson, who left Delta in September, received $2.15 million of his $7.4 million signing bonus last year. The rest will be paid each year through 2003. His stock option, which vests in yearly installments over 20 years, has an exercise price of $63.25 a share, the stock price on the date of the grant. His annual base salary is $175,000.

Founder and Chief Executive Officer Jeffrey Bezos earned $81,840 in base salary last year. He owns a third of the company's stock. began selling books five years ago and had annual sales of $1.6 billion last year, but has yet to make a profit. Its shares rose $2.50 to $66.25 yesterday. The stock, which initially sold at a split-adjusted $1.50 in May 1997, has fallen from its record high of $113 on Dec. 9.

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