Dell wants to drop 'Computer' from name
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NEW YORK (Reuters) -- Dell Computer Corp., the world's largest personal computer maker, wants to drop computer from its official name as it has diversified beyond desktops into servers and storage systems, according to its shareholder proxy filed with regulators this week.
Dell has said it wants to be called Dell Inc. because it better reflects its evolution.
In its filing, the company said Monday that while it began as a supplier of personal computers, its capabilities were now much broader, "and we are a leading seller of servers, storage systems and other technology products and services."
Dell said in its annual report for the year ended January 31, 2003 that desktop computer systems and notebook computers, including services, software and other associated technology, accounted for about 80 percent of its revenues.
Enterprise systems and associated technology, which includes powerful server computers and data storage systems, accounted for the remaining 20 percent. Dell competes against companies including Hewlett-Packard Co. and International Business Machines Corp. in this area.
The company recently began selling its own brand of handheld computers, computer printers and network switches.
Dell also said in its proxy that founder and chief executive Michael Dell received an annual bonus in fiscal 2003 of $2.48 million, or 174 percent of his target bonus based on goals for revenues and profits.
That's up from the previous year, when his bonus was $347,236 and only 25 percent of the target because the company had not met internal revenue goals. Dell's salary rose to $950,000 in fiscal 2003 from $925,962 a year earlier.
Chief Operating Officer Kevin Rollins received a bonus of $2.01 million, up from $243,389 a year earlier.
Dell distributed fewer options to its five most highly compensated executives in fiscal 2003 than in fiscal 2002. Dell said earlier this year that it would issue less options because of a looming accounting rule change that may require companies to treat options as expenses.
Michael Dell received 500,000 options compared with 1 million a year earlier and Rollins also received 500,000 options, down from 5.35 million in fiscal 2002.
Michael Dell had $82 million worth of exercisable options at the end of fiscal 2002 when the stock traded at $23.86. Rollins had $78.9 million worth of exercisable options.
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