Compaq CEO’s bonus in 2000 was $3.8 m.

NEW YORK: Compaq Computer Corp. chairman and chief executive Michael Capellas
received a base salary of $1.2 million and a $3.8 million bonus last year, a big
increase over his 1999 compensation. Capellas last year took over the reins of
the top personal computer maker when Ben Rosen, who was chairman since 1982,
retired from service.

Capellas, 46, was elected into the top slots in September last, just as the
personal computer sector was poised for a drop-off in demand. In addition to the
new title, last year Capellas received $24.4 million in restricted stock awards
as well as options for 850,000 common shares, which would be worth $24.5 million
if Compaq's stock appreciates 10 per cent over the life of the options.

The shares have a strike price of $18.10 and expire in December 2010.
Compaq's stock fell 10 cents to $18.40 on the New York Stock Exchange in
early-afternoon trading. The compensation package was a substantial increase
over what Capellas received in 1999, when he rose through the ranks to pick up
the titles of chief operating officer, president and chief executive.

In 1999, Capellas received a base salary and bonus that together added up to
$1.9 million, along with options for 1.8 million shares and about $5 million in
restricted stock awards. The stock price of Compaq, the leader in the out of
favor PC sector, has fallen to about half its year-high of $34.81. The
Houston-based firm was forced to warn that its latest fourth quarter would
suffer from sluggish demand that has hit the entire PC market. The company also
said it expected to suffer from slack sales into the current year 2001.

(C) Reuters Limited 2001.