MARCH 29--For the last three years, Robert Shillman, founder and CEO of Natick, MA-based Cognex Corp. (www.cognex.com), declined an annual base salary. He missed out on $325,000 in 2002 and 2003 and a $350,000 base salary in 2004, according to the company's annual proxy statement filed with the US Securities & Exchange Commission. Shillman also declined a $336,000 bonus based on the company's positive performance over the past year.
Shillman founded the company--with 300 people in Massachusetts and 680 around the world--in 1981 to design, make, and sell computers known as machine-vision systems that help automate manufacturing of some items or make sure there are no defects in others during the manufacturing process. Business clients come from areas including the semiconductor, electronics, steel, paper, automotive, medical-device, and food and beverage industries.
"It sends a great message and represents good corporate governance," said Steve Van Putten, executive compensation practice leader for Watson Wyatt Worldwide Inc. in Wellesley, MA. "And it shows he's fully vested and fully committed to driving the stock price."
Shillman said he saw his 2002 pay as something that was expendable during an economic downturn. The company laid off a number of workers during the slowdown and senior management had been asked to take a 10% pay cut. "I decided to lead the way and take a 100% pay cut," he said. "Anything we ask other people to do we should do times two. If you're a leader it means leading people, and leading means leading by example and taking more of the bitter medicine when asking other people to do it."