Reynolds American Inc, the second-largest tobacco company in the country, has awarded its incoming CEO Daniel M. Delen compensation package worth $ 8.5 million in fiscal year 2011 to 38 percent from fiscal year 2010, when he served as president and CEO of a subsidiary of RJ Reynolds Tobacco Co, according to an Associated Press analysis of regulatory filing.
Reynolds American Inc, the second-largest tobacco company in the country, has awarded its incoming CEO Daniel M. Delen compensation package worth $ 8.5 million in fiscal year 2011 to 38 percent from fiscal year 2010, when he served as president and CEO of a subsidiary of RJ Reynolds Tobacco Co, according to an Associated Press analysis of regulatory filing.
Pay package came in a year when the manufacturer of Camel cigarettes and Pall Mall, and the Kodiak and Grizzly smokeless tobacco saw its net profit to grow by more than 27 percent and revenue excluding excise duties remained unchanged at 8.5 billion dollars. The company based in Winston-Salem, North Carolina, raised prices, but it sold 6 percent fewer cigarettes.
The compensation deal was disclosed in the company's preliminary annual proxy filing with the Securities and Exchange Commission on Thursday night.
Base salary Delen increased by 15 percent to $ 1 million. He also received a cash bonus performance, totaling about $ 1.2 million. Delen, who became CEO in March of last year, also received stock and options worth about $ 6.2 million a day for granted.
46-year-old also received other compensation of $ 176,567, most of which were for his contribution to the pension plan of the company.
Susan M. Ivey, who retired as CEO in February 2011, having received payment for a package valued at $ 753,660 in fiscal year 2011, 96 percent less compared to $ 16.8 million in 2010.
Reynolds American also said it will hold its annual meeting of shareholders may 3AT its headquarters, where it will elect six directors, the board and vote on a shareholder proposal for the establishment of the Ethics Committee to review the marketing of the company.
Associated Press, the formula for calculating executive compensation is designed to isolate the value the board of directors has full executive compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market earnings on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations do not include changes in the present value of pension benefits, bringing the total AP differs in some cases than the total number of companies registered with the SEC.
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