CEO Pay Watch Ecolab Inc.
Douglas Baker Jr., chairman, CEO
Total compensation: $8,164,252 for the year ended Dec. 31
Non-equity incentive pay: $2,534,600
Other compensation: $210,935
Value realized on vesting shares: $4,339,717
New stock options: 150,650
Total 2013 return to shareholders: 46.6 percent
Note: Baker chose not to exercise any stock options last year and as a result he took home a lot less than he did the previous year.
In 2012, Baker took home $27.2 million in total compensation after he exercised $23.8 million worth of stock options.
In 2013, he didn’t exercise any options, but his compensation from salary and bonus went up 20.5 percent to $3.6 million after getting a 2.8 percent increase in his base salary and a 30 percent increase in his annual incentive compensation. His bonus increased by $584,600 in 2013 as the company topped its earnings per share goal for the year. The goal was $3.08 per share and actual results were $3.54 per share.
The company also uses performance-based restricted stock awards as part of its long-term equity compensation. The value of the restricted stock awards depends on the company achieving return-on-invested-capital goals for a three-year period. The compensation committee approved a payout of 100 percent of the performance-based restricted stock awards for the 2011 to 2013 period after the company achieved a return of 18.5 percent after accounting for the company’s two big acquisitions during that time.
At last year’s annual meeting, 97 percent of Ecolab shareholders approved the advisory vote on executive compensation.