CEO pay watch: 3M's Buckley: $7.5 million
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Salary: $1,670,000
Non-equity incentive pay: $4,521,495
Other compensation: $409,908
Value realized on vesting shares: $901,013
New stock options: 188,724
Total 2007 return to shareholders: 10.7 percent
Note: Buckley took home $7.5 million last year, down from the previous year's $12.5 million. The total compensation calculation in the company's proxy statement includes the value of options and restricted stock that were expensed during the year and the change in pension value. That total compensation in the proxy is $17.4 million. In 2007 the company expensed $2,888,867 worth of stock awards and $3,562,122 worth of option awards and the actuarial increase in the present value of Buckley's pension was $4.3 million.
In 2007, 3M phased out the company's longstanding profit-sharing plans for executives and replaced them with annual incentive plans for short-term incentive. The annual incentive plans introduce organic revenue growth and business performance compared to annual plans as new measures for short-term incentives.
The board of directors has added a "clawback" feature to executive compensation, requiring an executive to repay excess payments if 3M is required to make a significant restatements of its financial statements and the executive's intentional misconduct caused the need for the restatement.
PATRICK KENNEDY
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The 3M I Remembered
I grew up in Maplewood in the 70's, on the outskirts of the St. Paul East Side. My father and several neighbors worked (blue-collar) at … read more 3M. They were quite loyal to the company. Being X-Gen, I went into IT. There aren't many IT jobs at 3M. Most of that work is outsourced, either out of the US or to subcontractors. So to get back to your question about retiring Boomers -- the writing is already on the wall. They'll replace them with cheap foreign labor. Now the question is how long the X/Y-Gen can live between a rock and hard place: competing with developing world labor -- while paying inflated real estate costs here at home. I believe the writing is on the wall there too.
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