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

By Thomas Heath
Monday, June 28, 2010; 2

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.

Like the artisans who make cheese, bread, pizza and cupcakes, the folks who make interesting and complex cocktails have created a growing niche business for a discerning D.C. region clientele. Think PX in Alexandria; the Gibson, Bar Pilar and Marvin on 14th Street in the District; Bourbon in Adams Morgan; and Quill at the Jefferson, which opened a year ago after a two-year renovation.

Clinton Terry of PX, Sal Aldana of CityZen, Carlton McCoy of Sou'Wester and Patrick Owens of Jaleo D.C. have signed up so far for the first tilt.

Xavier Herit of Daniel, the uber-exclusive New York City restaurant, has agreed to be guest disc jockey and to stick around after the competition to be Quill's guest bartender for a few hours.

"D.C. locals are increasingly savvy and sophisticated about their cocktail choices, and the capital is lucky to have a wealth of true artists to feed the demand," said the Jefferson's managing director, Franck Arnold.

The winner will receive an overnight guest room at the hotel with dinner for two in its restaurant.

NEW DEAL FOR COMPUSEARCH

The big headline last week was the announcement that Booz Allen Hamilton, the Carlyle Group-owned government consultant, was going public in a $300 million stock offering.

Largely ignored was Carlyle's transaction involving Compusearch Software Systems, a Dulles-based software firm that Carlyle bought five years ago.

The new investors taking over 27-year-old Compusearch are two Washington region private equity players, JMI Equity of Baltimore and D.C.'s Arlington Capital Partners.

"We are very pleased with the outcome of this investment," said Brian Hayhurst, the Carlyle managing director who led the investment. "We created a lot of value."

Compusearch sells software that helps government agencies comply with federal rules when buying goods and services. More than 40,000 federal employees use the software.

HAUTE PAPIER OPENING VA. OUTLET

Georgetown's high-end stationery shop Haute Papier is opening a new outlet in Leesburg.

Entrepreneurs Sarah Meyer Walsh and Erin Miller have built a business selling proper etiquette to Washington's smart set over the past five years.

Their letter-pressed stationery has summoned the good and the great to various events, from the wedding anniversary celebration of former Washington Wizards coach Eddie Jordan to a Jennifer Lopez Democratic Party fundraiser to a baby shower hosted by NBC's Norah O'Donnell.

Miller is bullish on the expansion.

"A sleepy town like Leesburg is where people still send notes to loved ones," said Miller.

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