Texas Instruments CEO 's Total Compensation Grew 23% Last Year

Texas Instruments Inc. (TXN) Chairman and Chief Executive Rich Templeton saw the total value of his compensation rise 23% to $11.9 million last year, thanks mainly to a sizeable 74% increase in his bonus.

Like most semiconductor companies, TI has seen its quarterly results and stock price soar in recent months. The industry has benefited from a sharp rebound in demand after the recession caused customers to virtually stop buying chips. TI, which makes chips used in everything from cellphones to industrial equipment, has been bullish of late that a recent inventory correction will be short and shallow.

The company, whose shares have risen 41% over the past 12 months, said in a regulatory filing Monday that Templeton made $11.9 million in 2010, with his bonus increasing to $3 million from $1.73 million. His base salary of $990,087 rose 2.8% from 2009, and the amount he took home in profit sharing more than doubled to $171,094 from $63,084. Templeton's equity compensation increased 12% to $7.72 million.

TI Chief Financial Officer Kevin March, meanwhile, saw his compensation rise 28% to $3.9 million, boosted by a 14% increase in base salary and a 70% bonus increase.

TI shares slipped 2.6% to $35.34 in recent trading, falling along with the rest of the sector. Its shares have outperformed the Philadelphia Semiconductor Index in recent months, up 8.4% year-to-date compared to a 7.7% rise in the index.

TI has been increasing its focus on highly profitable analog and embedded-application chips while winding down its business selling mobile baseband chips after major cellphone makers shifted to a multisupplier strategy. The company also has been supplying chips to smartphones and tablets, including those for power management and processing with its OMAP platform.

In addition, TI has been using its ample cash to buy other companies, build plants, and beef up its sales and engineering forces in China and India. The company recently bought new manufacturing facilities in Japan and China, and is expected to gain share by using RFAB, its new 300-millimeter manufacturing facility for analog semiconductors.

The company said in a filing Monday that the increased compensation reflected those new focuses, with its operating profit up 13 points to 32% in 2010 and revenue up 24%.

"The compensation committee of our board of directors determined that, in total, our performance was well above median," the company said.

TI will be providing an update on its first quarter on Tuesday.

-By Shara Tibken, Dow Jones Newswires; 212-416-2189; shara.tibken@dowjones.com

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