PepsicoCEO Indra Nooyi, and Bristol-MyersSquibb CEO James Cornelius both saw double-digit pay increases in 2007, while thechairmen of Under Armour, Kevin A. Plank, cut his annual salary to $26,000. Meanwhile,Washington Post Co. CEO Donald Graham continued a tradition set 17 years agoand was paid an annual salary of $400,000 with no bonus, according to recentfilings with the Securities and Exchange Commission.
Nooyireceived compensation of $11.79 million last year, an increase of 24 percentover 2006, according to news reports.
Nooyiwas awarded 9.56 million dollars as compensation in 2006, according to a filingwith the SEC. The India-born CEO hadassumed charge as the chairman of the board in addition to the responsibilitiesas CEO of PepsiCo from May two last year. Nooyi received 1.3 million dollars insalary and stock awards worth 3.23 million dollars, the break up of thecompensation given in the filing shows. Further, the CEO was awarded 404,071dollars under the head of “all other compensation”.
Cornelius received a sharp boost inexecutive compensation in 2007 as the company faced tougher generic competitionprospects and a thinning development pipeline, according to the Associated Press. Cornelius did not become CEO until Feb. 11, 2008. Until then,he had been working as interim CEO since September of 2006. He took the interimpost after Peter Dolan was forced out for mishandling a patent settlement overthe company’s blood-thinner Plavix.
In 2007Cornelius’ compensation increased by more than fivefold to $13.5 million, witha salary of approximately $1.4 million, a bonus of just under $1.1 million,about $2.2 million in incentives, and other compensation totaling $424,954.”Other” compensation included required company jet travel, car andhousing allowances.
The bulkof his compensation came from stock options and restricted stock, worth about$8.4 million on the date they were granted.
SovereignBancorp Inc. CEO Joseph Campanellireceived a $4.4 million compensation package last year, including a significantbonus for staying with the bank, according to a SEC filing.
Campanelliwas given a salary of $826,923 and a bonus of $1.25 million for remaining atPhiladelphia-based Sovereign for a year, per terms of his employment contract.He also received more than $1 million in stock and options but didn’t get aperformance-based bonus for 2007, as banks, including Sovereign, were hit hardby the subprime mortgage credit crisis. He received $73,591 in what was termedother compensation, which included almost $9,600 for club memberships andsecurity costs of more than $49,000. The SEC filing said his salary willincrease to $875,000 beginning next month.
In 2006,he earned $3.6 million in total compensation, including a $565,000 salary. Formost of that year Campanelli was head of the bank’s
DrugmakerCephalon awarded nearly $16 million in compensation to its chief executive in2007, according to BusinessWeek. Frank Baldino Jr. received a salaryof $1.2 million, a bonus of $2.2 million and other compensation of nearly$77,000 — including $33,240 for car allowance and $14,500 in financialplanning expenses. He also received stock and option awards the company valuedat $12.4 million on the date they were granted, according to an SEC filing.
From2004 to 2006, Baldino’s average annual pay was 140 percent above the medianCEO’s pay of peer group companies, according to Proxy Governance Inc. in
Thechairman, president and chief executive of life-sciences equipment and productmaker Millipore Corp. received compensation valued at $3.9 million in fiscal2007, a 3 percent increase from the previous year. The Billerica, Mass.-basedcompany paid Martin D. Madaus$742,307 in base salary and a performance-based bonus of $488,000. Madaus alsoreceived stock and option awards valued at $2.6 million on the days they weregranted. Additionally, Millipore awarded Madaus $59,647 in all othercompensation, which included matching contributions on deferred compensationand financial planning and tax preparation services, according to Thomson Financial.
UnderArmour’s Plank voluntarily cut his 2008 salary from $500,000 to $26,000,according to Under Armour’s proxy statement filed with the SEC. Plank, Under Armour’s largest stockholder,”believes he should be compensated for his services based primarily on ourcompany’s performance,” the proxy statement reads.
The$26,000 salary was Plank’s take in 1996 when he started the Baltimore-basedsportswear apparel company, according to the proxy. Under Armour’s compensationcommittee has set Plank’s 2008 maximum bonus at $1.47 million. The bonus willbe tied to the company’s 2008 net revenue. Plank has also requested that UnderArmour stop providing him with a leased car for personal use.
Graham,Washington Post Co. chairman and chief executive, received a $400,000 salaryand no annual bonus like he has for the last 17 years, according to an SEC filing.
Graham’stotal compensation, including $11,700 in company contributions to his 401(k)plan, was $411,700. In 2006, he received compensation valued at $811,836, whichincluded the $400,000 salary and $400,000 in incentive-based compensation.
Graham,whose family has long held a controlling stake of voting shares in WashingtonPost stock, has been CEO at the Washington-based company since 1991. Grahamearned his compensation during a year in which the value of Post stock rose 6.1percent, from $745.60 to $791.43.