- The Washington Times - Friday, April 10, 2009

NEW YORK (AP) - The chairman and chief executive of Novellus Systems Inc. received compensation valued at $928,769 in 2008, a 78 percent decline for a year that the chip manufacturing equipment maker said offered “unprecedented challenges.”

In December, Richard S. Hill also agreed to a 50 percent salary reduction for 2009, in addition to foregoing bonuses and stock option grants for the year.

For 2008, Hill received a base salary of $887,455, up 12 percent from the previous year, according to a proxy statement the company filed with the Securities and Exchange Commission on Thursday.

He also received other compensation of $41,314, including $25,190 for tax planning and preparation, $9,374 for financial advisory fees and $6,750 in matching 401(k) contributions.

Hill received no performance-related bonus for 2008 and did not get any stock options or restricted stock last year.

His total compensation for 2008 was down from $4.2 million in 2007 when he received a performance bonus of $1.3 million and stocks and options valued when granted at more than $2 million.

Novellus, along with the entire semiconductor sector, suffered last year amid declining demand for technology products because of the recession.

Shares of San Jose, Calif.-based Novellus dropped 55 percent in 2008. Since the start of the year, however, the stock has regained some of its value.

The company lost $115.7 million in 2008, hurt by impairment and other charges, in contrast to a profit of $213.7 million in 2007. Its revenue fell 36 percent to $1.01 billion in 2008.

In response to the economic downturn, Novellus has cut about 10 percent of its work force, or about 350 jobs through attrition and layoffs.

The AP’s total pay calculations include executives’ salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.

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