Technology: CA signs on $1.3 million dotted line

Although he was already interim executive chairman of what was then called CA Inc., William McCracken was awarded a $1.3-million cash bonus when he signed on in January as the Islandia-based software company's chief executive, according to a company filing this week.

The company, now named CA Technologies, earlier this week defended the bonus, saying in a statement that it was partly for his service as interim executive chairman during fiscal 2010 and "payment to cover both increased personal living expenses incurred in 2009 and increased personal living expenses he expects to incur as a full-time executive of the company." McCracken lives in New Jersey. CA also has offices in midtown Manhattan.

The bonus was disclosed in CA's proxy statement.

McCracken, 67, was interim executive chairman from September 2009 to January 2010. He spent 36 years at IBM before joining CA.

Compensation experts said signing bonuses are normally reserved to lure top executives from one company to another, or for those who give up options or retirement rights at a company they are leaving.

According to the filing, McCracken received compensation valued at nearly $3.7 million in fiscal 2010. His base salary was about $1.1 million. McCracken replaced John Swainson, who retired.

The company's shares rose 32 percent during CA's fiscal year, which ended May 31; that day shares closed at $23.29. In recent weeks, along with much of the rest of the market, they have fallen to about $20 a share.

Gary Lutin, a Manhattan-based investment banker who oversees a CA shareholder forum, said he was "dumbfounded" by the signing bonus.

"This is obviously something shareholders need to question" at the annual meeting at company headquarters July 27, Lutin said. "Is that how much it took to compensate him for his pre-paid [golf] greens' fees?"