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Talk of the bay
Replacement Sykes to make much less than his father
By SCOTT BARANCIK
Published May 2, 2005
How much money is a Sykes worth?
According to Sykes Enterprises Inc.'s 2005 proxy statement, the valuations vary wildly.
In 2004, his last year before retiring as an employee at the customer service company he founded, former chairman, CEO and president John Sykes took home a salary of $1.1-million, along with $1.7-million in severance-related income.
His son, Chuck, who succeeded him as president and CEO in August, will earn a far more pedestrian salary in 2005: $375,000, according to his employment contract. That's just $6,500 more than chief financial officer Michael Kipphut will get.
Why the lower pay? Company officials did not respond to e-mails requesting comment.
Another issue addressed in the proxy, and to be voted on at the company's annual shareholders meeting May 24, is the makeup and payment of Sykes' board of directors.
Two longtime directors brought on by John Sykes, Ernest J. Milani and Gordon H. Loetz, will not seek re-election to the 11-member board. The proxy does not say why, but their departure may have something to do with the fact both received consulting fees in the past from Sykes Enterprises, likely rendering them nonindependent directors under Nasdaq Stock Exchange standards.
An internal review of director independence last month at Sykes revealed that, with Milani and Loetz gone, all but one Sykes director - CEO Chuck Sykes - will be considered independent, a fact that may boost shareholder confidence. Chuck Sykes has nominated two replacement candidates for the board: James K. Murray Jr., chairman of Murray Corp., a Tampa venture-capital group; and James S. MacLeod, managing director of CoastalStates Bank in Hilton Head, S.C.
Sykes shareholders also will vote May 24 on a new compensation plan for nonexecutive board members.
The plan would provide an initial grant of $30,000 in stock to all new directors; double each director's annual retainer to $50,000; and deliver 75 percent of the retainer in the form of stock, up from 50 percent.
[Last modified April 29, 2005, 19:34:02]
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