CEO Pay Watch Ecolab Inc.
Douglas Baker Jr., chairman, CEO
Total compensation: $27,239,330 for the year ended Dec. 31.
Non-equity incentive pay: $1,950,000
Other compensation: $161,199
Exercised stock options: $23,763,209
Value realized on vesting shares: $314,922
New stock options: 195,800
Total 2012 return to shareholders: 25.8 percent
Note: Baker, who orchestrated Ecolab’s largest acquisition with the $8 billion deal for Nalco Inc. in Dec. 2011, had his biggest payout since being named Ecolab CEO on July 1, 2004.
Baker’s compensation for the year increased due to the $23.8 million from long-held stock options that were exercised during the year and approaching their expiration dates. The value realized from those stock option exercises can be attributed to Ecolab’s financial and stock performance over last 10 years.
For the 10-year period from Jan. 1, 2003, to Dec. 31, 2012, Ecolab’s sales increased 215 percent and its adjusted earnings per share have increased 210 percent. During this same period, Ecolab’s stock has appreciated 191 percent compared to a 62 percent increase in the S&P 500 Index.
According to the company’s proxy statement, Ecolab’s stock has outperformed the S&P 500 for the last nine years and in 11 of the past 12 years.
Baker’s 2012 base salary increased by $50,000 after no salary increases the previous three years. Part of that $50,000 salary increase was in exchange for the elimination of certain executive perquisites during the year. Ecolab’s 2012 financial performance also earned Baker a bonus for the year of $1,950,000, a $50,000 increase over 2011.