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Capital Buzz: Booz Allen Hamilton's top five employees got $20 million in compensation last year

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By Thomas Heath
Monday, June 28, 2010

After taking a look at the compensation for Booz Allen Hamilton's five top executives, The Buzz thinks consulting would have been a suitable gig.

The top five employees pulled in about $20 million in compensation for the fiscal year ended March 31, according to the regulatory filing with the Securities and Exchange Commission. The company, which is 80 percent owned by the Carlyle Group, filed the information last week as part of its plan to sell $300 million in stock to the public.

Booz Allen chief executive Ralph W. Shrader, 65, earned $4.228 million, including nearly $1.2 million in salary, a $1.6 million performance bonus, $927,758 in stock dividends, $392,371 in non-qualified retirement contributions, $33,753 in club memberships, $15,000 for financial counseling and $32,377 for 401(k) contributions.

Chief Financial Officer Samuel R. Strickland, 59, earned just over $3 million last year, including $825,000 in salary, a $1.1 million performance bonus, $675,348 in dividends, as well as $32,481 for club memberships, $32,377 in 401(k) contributions and $34,677 for his executive medical plan, according to the form.

General Counsel C.G. Appleby, 63, earned $3.9 million, Executive Vice President Joseph E. Garner, 62, made $3.8 million and Executive Vice President John M. McConnell, 66, came in at $4.1 million.

All five together represent more than a century of service at Booz Allen Hamilton.

But risks come with any investment, and Booz Allen is no different. Because Booz Allen depends on U.S. government agencies for nearly all of its revenue, its profits could suffer if those federal agencies were harmed or if a new administration decided to cut back on spending, the firm said in outlining the risks to its business. There's also the possibility that the federal government will decide to hire its own employees to do the work that Booz Allen now performs.

Shrader and his team in the past 15 years have grown their company at an impressive 18 percent annually. Revenue now tops $5.1 billion as of the last fiscal year.

The vast majority of that -- about 98 percent -- comes from 1,300 clients in the federal government.

The company has $9 billion in contract commitments, about $2.5 billion of which has been funded by the federal government.

COCKTAIL COMPETITION

Washington's bar scene has earned its own cocktail competition, which begins July 11 at the Jefferson Hotel's elegant Quill bar.


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