Top VMware execs score $42m in total pay amid 'unprecedented Broadcom uncertainty,' board says

"The Compensation Committee took into consideration the leadership impact in achieving operating plans and MBOs during a challenging period of uncertainty associated with the acquisition"

VMware's top executives will take home a combined $42.4m (£33.34m) in total compensation in 2023 as the team toiled last year against "unprecedented corporate uncertainty" brought about by the still-pending takeover by Broadcom.

"In holistically evaluating FY23 performance, the compensation committee also took into consideration the leadership impact in achieving the Company's operating plans and MBOs during a challenging period of unprecedented corporate uncertainty associated with the pendency of the Acquisition," VMware's proxy filing from 1 June stated.

The company's fiscal year ended in February.

Shareholders will have a chance to vote on compensation lined up for company officers on 13 July, however the vote is symbolic and not binding.

VMware shareholders already approved the company's merger with Broadcom in a December vote.

As the board put together CEO Raghu Raghuram's compensation, it offered him greater incentives around financial and operational performance, to the tune of a 150 per cent salary bonus, an objective he met, the board said.

VMware's goal was to see him increase sales in its subscription offerings.

This was also one of the priorities mentioned by Broadcom CEO Hock Tan when he announced the takeover.

VMware said it reached revenues of $13bn (£10.2bn) last year, and did deliver more sales through subscription.

VMware's board hailed the growth.

"We continued to make progress on our business model transition driven by our expanding subscription and SaaS portfolio, which resulted in FY23 subscription and SaaS annual recurring revenue growth of 30 per cent year-over-year, totalling $4.66bn (£3.66bn)," the board said.

The company pending merger with Broadcom remains in the hands of global regulators, with the US Federal Trade Commission, the UK's Competition and Markets Authority and the European Union's Economic Commission each involved in deep dive investigations of how the mega-deal may harm markets.

The deal has cleared governments in South Africa, Brazil, and Canada which reserves the right to apply conditions to the merger for up to a year after it closes.

Reuters reported last week that the EU was expected to agree to the deal, but only with conditions in place.

That report sent VMware's stock price to a 52-week high.

If the deal does go through, Broadcom has offered VMware executives a combined $164 million should they decide to leave, as CRN previously reported.