Total compensation: $4,642,502 for the year ended May 26, 2019 • Salary: $1,200,000 • Nonequity incentive pay: $1,824,000 • Other compensation: $125,052 • Exercised stock options: $868,645 Value realized on vesting shares: $624,805 New stock options: 325,663 • CEO pay ratio: 172-1 Median employee pay: $57,177 • Total shareholder return: 29.4%
Note: Harmening's realized pay increased 14.4% compared with the previous year.
The increase came from a larger cash incentive bonus for the year as his $1.2 million base salary remained the same and the amount he realized from long-term equity awards that he either exercised or that vested was slightly lower than the previous year.
Harmening's $1.8 million cash incentive award was based on sales, segment operating profit growth and earnings per share growth. The company's sales rose 7.1% to $16.9 billion for the fiscal year ended May 26 but that was 71% of the target for the year.
The company did better on its segment operating profit growth measure and exceeded its target for adjusted diluted earnings per share. The actual EPS declined 20% from the previous year mainly due to one-time benefits of tax reform in the prior year. But the company reported that adjusted earnings per share on a constant currency basis increased 4% during the year.