Total compensation: $3,603,849 for the year ended Dec. 31
Non-equity incentive pay: $1,900,000
Other compensation: $217,591
Exercised stock options: $486,258
New stock options: 192,100
Total return to shareholders: 16.3 percent
Note: Ecolab's annual bonus is based on adjusted diluted earnings per share. For 2011, the company earned $2.54 per share. However, Baker recommended a payout of less than the warranted amount so proceeds could be delivered to business units that didn't reach their goals because of extenuating market circumstances.
That adjustment generated approximately $3.5 million of savings, which was "redeployed to increase the cash incentive payouts'' at business units hurt by "the challenging operating environment."
Based on corporate performance, Baker had earned an annual bonus of $2.3 million, but that amount was reduced by $400,000 after the adjustment.
Baker's total compensation was down $4.9 million from 2010, mainly because he exercised fewer stock options. Baker's salary has remained unchanged for past three years.
The company awarded Baker more in long-term stock incentives for 2011 than the previous year. The company recorded an expense of $2.4 million for stock awards and $2.1 million for options granted in 2011. Those amounts are not included in total compensation above.