Applied Materials’ CEO Gets Hefty Bonus

Applied Materials Inc. raised Chairman and Chief Executive James Morgan’s bonus nearly fivefold after shares of the biggest semiconductor-equipment maker almost tripled last year. Morgan received a $1.27-million bonus in fiscal year 1999, up from $264,190 in 1998, the company said in a filing with the Securities and Exchange Commission. He was awarded an options package valued at about $19 million if the stock gains 10% a year for the term of the options, compared with options valued at about $2.3 million in fiscal 1998. Morgan’s salary rose 4% to $778,542. Applied has benefited as chip makers updated product lines and boosted output amid a 15% rise in demand last year. Applied shares closed off $10.63 at $177.75 on Nasdaq.