CEO Pay Watch Capella Education Co.
J. Kevin Gilligan, chairman, CEO
Total compensation: $1,171,591 for the year ended Dec. 31
Non-equity incentive pay: $295,354
Other compensation: $10,862
Value realized on vesting shares: $183,671
New stock options: 29,405
Total return to shareholders: –21.6 percent
Note: Executive bonus compensation at Capella, an online postsecondary for-profit education company, is based on a mix of financial measures and learner satisfaction factors. According to the Minneapolis-based company’s proxy statement, “the combined results of our financial performance, learner satisfaction, and learner success resulted in annual incentive plan payout well below target.”
Capella posted 2012 revenue of $421.9 million and $59.4 million in operating income. The company barely achieved its revenue goal and missed its operating income goal. The company did achieve goals for learner satisfaction and learner success.
Overall Gilligan’s total compensation, including the value of restricted stock realized during 2012, was up 4.4 percent. Gilligan’s annual bonus of $295,354, while 6 percent higher than in 2011, was about 43 percent of the targeted award for 2012. Gilligan’s annual salary also increased approximately 2.6 percent.
Because the company’s continued weak share price performance, Gilligan and other executives received reduced stock and option awards for the year. For Gilligan, the company recorded an expense of $499,001 for stock awards and $484,344 for option awards in 2012, approximately 36 percent of the value of his 2011 award.