CEO Pay Watch Buffalo Wild Wings Inc.
Sally Smith, president, CEO
Total compensation: $5,580,758 for the year ended Dec. 31
Non-equity incentive pay: $919,800
Other compensation: $149,865
Exercised stock options: $949,240
Value realized on vesting shares: $2,861,853
New stock options: 12,293
Total 2013 shareholder return: 102.1 percent
Note: Smith’s take-home compensation of $5.6 million was more than a 58 percent increase over 2012.
The compensation committee gave Smith a 10.2 percent increase in base salary, from $635,000 to $700,000, to recognize her performance in 2012 and because her base salary was below the median for the company’s peer group.
Her annual performance bonus is based on the casual restaurant company’s revenue, net income, same-store sales growth, and number of new restaurant openings.
The company’s annual revenue in 2013 of $1.27 billion was just shy of its target for the year. But net income of $72.8 million flew by its target of $57.5 million. The company had same-store-sales growth in all four quarters and thanks to more stores opened by franchisees met its new-stores-opened goal of 107.
Those performance measures earned Smith a bonus greater than the target for the year.
Buffalo Wild Wings executives also get long-term equity awards in the form of performance-based restricted shares. For the 2011-2013 performance period the company had net income of $178.8 million, which was above the targeted net income goal of $162.7 million, and executive officers earned the maximum number of shares under the program.