The News and Observer from Raleigh, North Carolina • 21

Section E) The News and Observer Tuesday April 9 1991 Raleigh NC Electric chiefs' pay cur cos Includes salary deferred compensation and other benefits Briefly Business Utilities boost compensation for executives'- $581097 Percent change 207 $481 S3 Smith Jr Carolina Power Light $754415 Percent change 94 Duke Power Co Percent change 150 Ford executives took cut in compensation in 1990 page 4D William Berry chairman of Dominion received about $701000 1990 through salary and stock options a raise of about $91000 When only Mr Berry's cash compensation is considered his salary increased by nearly $108000 to $694458 Virginia Power serves customers in northeastern North Carolina under the name North Carolina Power Mr Smith's compensation included a cash salary of $438760 a 13 percent increase from 1989 serves Wake County and most of Eastern North Carolina The rest of Mr Smith's compensation included stock purchases deferred salary and a new incentive program approved by board last year to retain key executives Mr Smith was awarded $70000 through the incentive program which spokesman Wade Pridgen said was a key reason Mr Pridgen's overall compensation had jumped so markedly last year "Duke and Virginia Power have had incentive compensation plans for some time" Mr Pridgen said "Most companies have similar plans tied to performance" Both Mr Pridgen and Joseph $609853 By CE YANDLE Staff writer Sherwood Smith Jr has said 1990 was a very good year at Carolina Power Light Co in Raleigh board of directors apparently agrees: It last year approved a jump of nearly 21 percent in the compensation package for the company's chief executive to $581000 a raise of nearly $100000 Even with the raise Mr Smith's pay package lagged behind those of his counterparts at the two other big electric utilities serving the state: Duke Power Co in Charlotte and Dominion Resources Inc in Richmond Va the parent of Virginia Electric and Power Co The executives' compensation was disclosed in proxy statements that the three companies filed and submitted to shareholders Of the utility chiefs William Lee chief executive of Duke Power received the highest compensation getting $754415 in 1990 a 94 percent increase over his 1989 pay package His package included a base salary of about $520000 plus stock deferred pay and company contributions to his life insurance premiums Duke Power serves Durham and Orange counties in the Triangle as well as most of western North Carolina Exporter aims to get TV station shipshape Elbert Boyd alters course for WKFT By CE YANDLE Staff writer Elbert Boyd Jr has learned the importance of knowing the customs of his foreign clients Several years ago meeting with an executive from Saudi Arabia to discuss a potential business deal Mr Boyd crossed his legs and exposed to the Saudi the sole of his shoe The deal never materialized "In Saudi Arabia it is improper to cross your legs and show the bottom of your foot to your host" said the president of Boyd Associates Inc in Raleigh "I quickly realized I must learn the customs of those I want to do business with In the beginning we goofed a lot" Over the years Mr Boyd has documented his mistakes so neither he nor his employees would repeat mistakes The company has an entire book on foreign IBM looks By JOHN MARKOFF New York Times News Service NEW YORK The new president of IBM's mainframe computer division said in an interview Monday that the company was working to "reincarnate" its most powerful and expensive computers using the same low-cost and speedy technologies that have led to the explosive growth of work stations and personal computers The company which introduced a new generation of mainframe computers last September said Monday that it was redesigning its large systems to take advantage of the growing power of inexpensive chips known as microproces in i 'si! 1990 1989 1990 1989 William 7" 1990 1989 William Source: Company reports Maher a spokesman for Duke Power said their top executives were a bargain when compared with other chief executives Both men referred to a Forbes magazine study in May 1990 of compensation for executives at the nation's 800 largest companies Based on the survey both Mr Smith and Mr Lee would have edged in an interview that he might experience a few more goofs as he tries to learn his way around in what is regarded as a tough industry "But the station will get better" he said "People will start noticing a difference" The previous owners of WKFT were forced to file for bankruptcy earlier this year after piling different microprocessors At a news conference scheduled for today a consortium of almost two dozen computer makers and software publishers will announce a new computing standard based on microprocessors made by Mips Computer Systems Inc and by the Intel Corp Until now mainframe computers like those made by IBM have been based on expensive custom-designed high-speed chips IBM's major large-systems competitors also are pursuing microprocessor-based alternatives to traditional mainframe designs Last month executives at Digital Equipment Corp said they planned to enter the market for massively parallel computers services a contract the bank would cancel if regulators approve its purchase of First Federal The bank expects to complete the First Federal purchase by June 30 The mortgage operations are expected to be moved within four weeks after the purchase Two years ago when the real estate industry began its slump First Citizens closed eight of its mortgage offices At the time the bank also dropped many mortgage banking operations such as Sherwood tati Market watch What the indexes did DOW closed at 291856 2178 NYSE closed at 20717 151 AM EX closed at 36425 084 NASDAQ closed at 49565 -014 500 closed at 37866 330 WILSHIRE $23248 closed at $3627768 Program buying boosts stocks at last minute NEW YORK Stocks chugged along most of the day Monday with little movement but heavy program buying carried the Dow Jones industrial average sharply ahead in the final hour The Dow climbed 2178 or nearly 1 percent to 291856 while the Standard Poor's 500 rose 330 to 37866 With investors and traders perplexed over the lack of movement in interest rates despite signs of high unemployment and a weak economy trading slumped Monday to 1386 million shares That was the quietest since Jan 16 the day before the air war began against Iraq when volume was 1346 million Trump has condo plan for the Plaza Hotel NEW YORK If Donald Trump's latest plan goes through most of the rooms at the Plaza Hotel will be converted into condominium units Mr Trump and some of his bankers Monday confirmed the existence of the conversion plan which is subject to the approval of the New York state attorney general's office The plan has not been filed with the attorney general's office but a filing is expected within the next 60 days Even by New York standards the prices would be astronomical as Mr Trump seeks to reap some extraordinary benefits from the New York landmark he bought for about $390 million three years ago NCR expected to post disappointing earnings NEW YORK NCR Corp is expected to report disappointing first-quarter earnings next week industry analysts said Monday putting added pressure on the computer maker to negotiate an end to its takeover fight with While not commenting directly on the expected figures NCR Chairman Charles Exley Jr conceded Monday that a poorer-than-anticipated profit could undermine his bargaining position with the telephone company and his own shareholders CM says flaw halted Corvette production DETROIT General Motors Corp stopped making and selling its sleek $64000 Corvette ZR1 for nearly four months to search for and correct an engine flaw a spokesman said Monday The problem was discovered in November when seven of the car's 370-horsepower engines broke down as workers revved the engines at the shipping yard of GM's Bowling Green Ohio assembly plant Chevrolet spokesman Tom Hoxie said Jacksonville newspaper to switch delivery times JACKSONVILLE The Daily News at Jacksonville will switch to morning delivery May 27 the newspaper announced Monday The 23000-circulation newspaper currently is delivered in the afternoons Monday through Friday and on Saturday and Sunday mornings In announcing the change Daily News Publisher Charles Fischer said the newspaper was responding to what he saw as a growing preference for morning delivery among readers and advertisers From wire reports Inside Airfares 3D The big discount fares offered by most large airlines in the last four weeks attracted thousands of bookings Business people AD NC markets 7D Foreign exchange 6D Stocks 5D-7D 1 i i I Co Kathenne Fowler The News and Observer panies traditionally have lagged behind those of other large companies partly because utilities are federally regulated Also both Mr Lee and Mr Smith work in the Southeast where the cost of living is comparably lower than in other regions of the nation Whitakers plant bans smoking By JIM BARNETT Staff writer White-collar workers who smoke know how much tougher it is these days to find a place to puff at the office But now a factory in Whitakers is clamping down prohibiting smoking anywhere inside the building Firms increasingly changing the way workers live page 4D Consolidated Diesel Co an engine manufacturer near Rocky Mount said Monday that its 1400 employees an estimated one-fourth of whom smoke no longer would be allowed to indulge their habit at work The plant decided to ban smoking after the idea was studied by a group that included production workers plant health officials and management said Mary EB Smith a community relations official The decision was made in one of the biggest pockets of North Carolina's tobacco industry: Nash County produces nearly 21 million pounds of tobacco a year the fifth-largest tobacco crop of any Tar Heel county While many factories have restricted smoking in sensitive areas where dust or gas fumes might be present few if any plants in North Carolina have banned smoking entirely anti-smoking advocates say "Possibly white-collar workers have sought more education and information about it and blue-collar workers might not have had that as readily available to them" said Deborah Bryan director of programs and government relations for the American Lung Association of North Carolina In fact studies have linked smoking rates to education levels A 1989 study by the Surgeon General found that 33 percent of people with a high school degree smoked but only 16 percent of college graduates were smokers In North Carolina smoking has been restricted at white-collar employers such as banks research laboratories and government bodies including Wake County offices But businesses of all types are beginning to realize that banning smoking is good for the bottom line said Ms Bryan of the lung association "Employers have learned that they get as much as a 50 percent reduction in insurance rates" she said "It's quite cost-effective for them" Ms Smith of Consolidated Diesel said the plant was offering smoking cessation classes to help smoking employees adjust to the new policy which took effect April 1 $689439 $701073 S' Staff photo by Roger Winsteod Elbert Boyd Jr concedes his lack of experience in broadcasting but he thinks management principles from the export business ought to work at WKFT-TV channel 40 as well Berry Dominion Resources Inc placed in the lower half of executive pay Both companies were among the nation's 350 largest firms "In terms of being a large corporation we would rank higher in company size than compensation" Mr Pridgen said Mr Maher acknowledged however that salaries at utility com- up more than $3 million in debt to several large Hollywood film studios Mr Boyd and his associates bought the station through bankruptcy court after no other bidders showed interest Despite the station's previous troubles Mr Boyd 48 is optimistic that he can turn the See EXPORTER page 8D within the next year Also earlier this year' IBM's principal mainframe competitor Amdahl Corp licensed Sun Microsystem Inc's Sparc microprocessor design Mr Donofrio an electrical engineer by training took over in January as head of IBM's mainframe computer business after leading the successful introduction of the company's RS6000 work station business last April He said the semiconductor technology that was now standard in personal computers and work stations and used little power would have an increasing impact on the design of mainframe computers See IBM page 8D company offering mortgage insurance But the bank kept open the subsidiary for the purpose of making home loans a business in which the bank itself also engages The relocation primarily involves the subsidiary's back-shop operations said Noel McLaughlin a First Citizens spokesman Jimmie Eason the mortgage company's president will remain in Raleigh where he has other responsibilities for the bank Ms McLaughlin said fo -1 customs Now the international exporter is trying to learn the customs of the broadcasting business He and four business associates last week bought the assets of bankrupt WKFT-TV channel 40 in Fayetteville for $14 million The station is Mr Boyd's first foray into the television industry and he readily acknowl to 'reincarnate' mainframes sors These chips combine all of a computer's functions onto a single piece of silicon thereby significantly lowering costs and raising computing speeds Nicholas Donofrio president of the Armonk-based computer maker's Data Systems division also said Monday "I basically believe that our single greatest competitive threat is from our non-traditional competitors" "It's coming from the desktop competition" he added "I keep telling my people that we live in rented space and the lease is held by the customer" International Business Machines Corp's principal competitors in the desktop computing market are now lining up behind be laid off the bank said The move is being planned in the wake of First Citizens' effort to buy First Federal Savings Bank in Hendersonville a healthy savings and loan with assets of $450 million First Citizens which has headquarters in Raleigh wants to move the mortgage operations so that it can use First Federal's computer system to process mortgage loans The Raleigh bank has a contract with an Atlanta company to provide those computer First Citizens to move mortgage By KIM KENNESON Staff writer In a move to cut costs First Citizens Bank plans to move the operations of its mortgage company in Raleigh to the Western North Carolina town of Hender-sonville A few of the company's 17 employees will be shifted to Hen-dersonville and the remainder will be assigned other jobs at the bank None of the employees will.