CEO Pay Watch Capella Education Co.
J. Kevin Gilligan, chairman, CEO
Total compensation: $2,074,497 for the year ended Dec. 31, 2013
Non-equity incentive pay: $710,903
Other compensation: $10,678
Exercised stock options: $436,800
Value realized on vesting shares: $229,916
New stock options: 41,785
Total 2013 shareholder return: 136.6%
Note: Capella did well in a difficult environment for for-profit higher education companies largely by achieving its goals for financial success and for student satisfaction, which helped Gilligan to a bigger bonus. The company also strengthened its ties to Gilligan by giving him a special retention award in May.
Gilligan took home $900,000 more than he did in 2012, mainly from a more than 140 percent increase in his annual bonus.
Capella bases its annual incentives on financial measures and two internal measures of “learner satisfaction” and “learner success.” The company met or exceeded its financial goals and met its learner goals.
In May 2013, the board gave Gilligan a “strategic transformation incentive award” in the form of stock units that will vest after five years. The award’s present value was calculated at $2.5 million.