LOCKHEED MARTIN CHIEF EXEC, CHAIRMAN GET HUGE PAY HIKE

Lockheed Martin Corp. disclosed Monday that its top executivesreceived huge pay increases following the $10 billion merger ofMartin Marietta Corp. and Lockheed Corp. last year.

Chief Executive Norman Augustine, formerly chairman of MartinMarietta Corp., received cash compensation of $10.6 million, thecompany said in its proxy statement. In addition, he receivedoptions for 100,000 shares, worth up to $9.5 million. In 1994 hereceived $1.8 million in salary and bonus.

Chairman Daniel Tellep was paid $4.3 million, in addition tooptions for 100,000 shares, the filing showed. In 1994 he received$1.62 million in salary and bonus.

Yields increase on Treasury bills

WASHINGTON (AP) -- Interest rates on short-term Treasurysecurities rose in Monday's auction.

The Treasury Department sold $13.5 billion in three-month billsat an average discount rate of 5.02 percent, up from 4.95 percentlast week.

Another $13.5 billion in six-month bills were sold at anaverage discount rate of 5.06 percent, up from 5.00 percent.

The new discount rates understate the actual return toinvestors -- 5.16 percent for three-month bills with a $10,000 billselling for $9,873.10, and 5.26 percent for a six-month billselling for $9,744.20.

In a separate report, the Federal Reserve said Monday that theaverage yield for one-year Treasury bills, the most popular indexfor making changes in adjustable rate mortgages, rose to 5.41percent last week from 5.15 percent the previous week.

Tandy won't sell Computer City

DALLAS (Bloomberg) -- Tandy Corp.'s money-losing Computer Citychain will return to profitability this year, said Dwain Hughes,chief financial officer of the Fort Worth, Texas-based retailer.

He also said the company has no plans to find a buyer forComputer City. Tandy and Dallas-based CompUSA Inc. broke off talkson a possible sale last month.

Instead, Tandy will spruce up its 99 Computer City locations byadding a children's software section and a separate counter to helpcustomers with upgrades.

The chain also switched its sales staff to a commission-basedcompensation plan and will improve its inventory management, Hughessaid.

"We could see a profit improvement of $20 million to $30million this year," he said.

The chain's same-store sales for February rose by 7 percentfrom a year ago, he said.

Personal computer market slows

SAN JOSE, Calif. (Reuters) -- Growth of the U.S. market forhome personal computers will slow abruptly this year and salescould even begin shrinking by 1998 as the market matures, researchfirm Dataquest said on Monday.

The forecast of a rapid cooling of the market could be bad newsfor the personal computer industry and its suppliers, many of whomare already reeling from slower PC sales during the recentChristmas shopping season.

In a new market research study, Dataquest said the growth ofthe U.S. market will be in single digits in 1996 at only 8 percentcompared with its explosive 42 percent growth rate in 1994 and anearly 22 percent jump last year.

In other business news

Eastman Kodak Co. said Monday that it has named Wilbur Prezzanoto the new position of vice chairman, effective immediately.Prezzano continues as a member of Kodak's board of directors andpresident of its China region.

MCI Communications Corp. on Monday followed rival AT&T Corp. inoffering a free Internet trial to tempt millions of ordinaryconsumers to try their hand at surfing cyberspace. MCI plans tooffer its long-distance customers five free hours of Internetaccess per month, in addition to the unlimited access for $19.95per month which it has been offering since the service began.

Federal Express Corp. and the Air Line Pilots Association saidon Monday that they reached a tentative agreement on a newcollective bargaining pact for the company's 3,000 pilots. Thefive-year agreement includes pay increases, a portion of which isrelated to corporate profitability, work rule changes that provideimproved flexibility and productivity, and enhanced retirementbenefits.