JOHN WIEHOFF | C.H. Robinson worldwide
Chairman, president and CEO
Total compensation: $5,534,194 for the year ended Dec. 31, 2015
Salary: $410,000
Nonequity incentive pay: $1,767,315
Other compensation: $34,102
Value realized on vesting shares: $3,322,777
New stock options: 150,720
Total 2015 shareholder return: -15.2 percent
Note: Wiehoff's base salary remained the same and his annual performance bonus increased 13.8 percent to $1.8 million, but his realized pay went down 25 percent from 2014, mainly because previously issued long-term equity awards that vested during the year were worth less than the year before.
For this year, C.H. Robinson has decided to make significant changes to its executive compensation programs. The previous model was "non-traditional," according to the proxy filed Friday. It used lower annual salaries and higher levels of equity compensation. The company felt the model was affecting its ability to recruit new executives and to integrate executives from companies C.H. Robinson acquired.
The new model still links pay to performance, and targeted total compensation packages will be consistent, just with higher base salaries more in line with industry norms. The company will continue to use a mix of restricted stock awards and incentive stock awards for long-term equity awards. The performance-based restricted stock awards will vest over five years — a longer vesting period than with most companies — and the stock options will have some financial incentives tied to them.
The company promises to disclose more about the compensation changes in next year's proxy.
PATRICK KENNEDY
