DREAMWORKS' KATZENBERG PAID JUST $1 SALARY IN 2007

DreamWorks Animation SKG chief executive officer Jeffrey Katzenberg turned down millions of dollars in equity awards and was paid only $1 in last year, the company said in a securities filing filed Friday with the Securities and Exchange Commission. Katzenberg waived annual stock awards for 2006 through 2008 in order accommodate the salary and equity-based compensation of studio president and chief financial officer Lew Coleman, who was hired in 2005. The stock awards would have been worth $5 million a year. Katzenberg also waived performance-based equity awards that would have been worth another $1 million to $3 million a year, the company's proxy statement said. In 2007, Coleman received total compensation of $6 million. That figure included $1.25 million salary, as well as $1.75 million in non-equity incentive plan compensation. He also was given shares and options valued at an estimated $3 million on the day they were granted. As well, Coleman received $21,000 in separate compensation for an automobile allowance, legal services and matching 401(k) plan payments. Although not given any other compensation, stock options or awards in fiscal 2007, Katzenberg remains eligible for previously granted stock awards that were worth $15.8 million on December 31 and will vest in October 2009, the company said. Over 423,000 as yet unearned stock options that were previously granted at an exercise price of $28 will vest in October 2009 as well. However, these are currently worthless, as the stock now trades at about $24 a share. DreamWorks Animation SKG said in its filing that 2007 net profit zoomed to $218.4 million, up from $15.1 million the previous year, as revenue rose 94% to $767.2 million. Katzenberg, David Geffen and Microsoft Corp. co-founder Paul Allen make up an investment group which owns 18.6% of the company's 81.6 million outstanding shares, but which controls 72.2% of its voting rights. Steven Spielberg owns 6 million shares, or another 7.4% of DreamWorks Animation.