CEO Pay Watch Best Buy Co. Inc.
Hubert Joly, chairman and CEO
Total compensation: $7,983,336 for the year ended Jan. 31
Non-equity incentive pay: $3,078,500
Other compensation: $42,796
Value realized on vesting shares: $3,687,040
New stock options: 183,990
Total fiscal 2015 shareholder return: 53.1 percent
Note: Joly's realized pay decreased 42 percent from the previous year's total of $14 million mainly because he didn't exercise any stock options last year after he was allowed in 2013 to exercise $6.7 million worth of stock options early to cover divorce costs.
Joly's salary stayed the same as last year. His annual incentive pay increased 22.4 percent over the previous year because Best Buy's financial performance was above expectations and earned executives 131 percent of the targeted goal for the year. The company's operating income of $1.5 billion exceeded the target by $170 million, and it was successful in making more of its planned expense cuts than targeted for the year.
At last year's annual meeting, 98 percent of shareholders approved the company's executive compensation plan, an improvement over the previous two votes of 83 and 38 percent, respectively, in 2013 and 2012. Shareholder support increased because of the company's increased performance but also was aided by additional shareholder outreach in 2014 and 2013 when the company emphasized its pay-for-performance measures.