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Studio discloses exec pay

D'works' SEC filing details what players earned in 2003

A correction was made to this article on July 22, 2004.

NEW YORK — As Shrek heads to Wall Street, he’s opening up previously closed ledger books at the DreamWorks animation unit.

For the first time ever, folks were treated to the salaries of top DreamWorks execs as the company’s SEC filing detailed just what they earned in 2003 and much of what they’ll probably take to the bank after the offering. Private companies, naturally, aren’t required to disclose executive compensation, but public companies must.

Of the four DreamWorks Studios execs who will become top dogs at the new company, Jeffrey Katzenberg did not receive any compensation from the studio in 2003. However, he’s set to receive stock options worth an estimated $20.5 million when the animation IPO is consummated.

DreamWorks’ chief operating officer, Ann Daly, earned a $1.5 million salary and 30,000 stock options in 2003. General Counsel Katherine Kendrick earned $550,000 plus 25,000 options and chief financial officer Kristina Leslie earned $300,000 plus 10,000 options.

Daly’s new salary will dip to $1 million but she’ll be granted options worth an estimated $8 million when the IPO is consummated.

Kendrick and Leslie will receive annual compensation of, respectively, $550,000 and $500,000, plus an estimated $3 million each in stock options.

The new chairman of the board, former PepsiCo chief Roger Enrico, will be granted options worth an estimated $4 million. His employment contract, with all the others, will be spelled out later on when the IPO becomes official.

DreamWorks principals Steven Spielberg and David Geffen, who won’t be managers at the animation group, will enter into consulting agreements with the new company — details also to come.

The filing also revealed some buried stats on the financial perf of the animation unit which, when it goes public, will report results every three months.

The division lost $25.9 million for the quarter ended in March on revenue of $40.8 million, compared with a net loss of $11.9 million on revenue of $48.2 million in the year-earlier period.

For all of 2003, the division lost $189 million on revenue of $296 million. In 2002, it posted losses of $31 million on revenue of $456 million. And in 2001, animation had a $3.7 million net profit on revenue of $661 million.

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