APPLE Computer Inc paid chairman and chief executive Mr Gilbert Amelio nearly $3 million (£1.8 million) in the 1996 fiscal year, while outgoing chief executive, Mr Michael Spindler, received a total of $4.66 million.

According to the company's annual proxy statement, filed last Friday with the US Securities and Exchange Commission, Mr Amelio's compensation could rise substantially if he can turn the troubled computer maker around, reflecting the value of stock options and performance shares.

If Apple stock rose 5 per cent a year for the next five years, Apple said Mr Amelio's option to buy one million shares of Apple stock would be worth $16.5 million. If it rose 10 per cent, the options would be worth $41.8 million.

The options have an exercise price of $26.25, making them virtually worthless right now because Apple's stock price is only $23.

However, if the former National Semiconductor Corp chief executive can revitalise Apple, the options could become quite valuable.

According to the company's proxy statement, Mr Amelio, who replaced Mr Spindler in February, received a base salary of $655,061 in the fiscal year 1996 and a bonus of $2,334,000, bringing his total cash compensation to $2.99 million.

In setting the bonus amount, Apple said Mr Amelio met or exceeded six of the eight targets established by the board of directors' compensation committee.

The targets included goals for revenue growth and gross margin, building a new management team, establishing Apple's strategy and restructuring its business lines.