CEO Pay Watch Mosaic Co.
James Prokopanko, president and CEO
Total compensation: $15,916,260 for the year ended Dec. 31
Non-equity incentive pay: $2,203,200
Other compensation: $817,037
Exercised stock options: $8,082,456
Value realized on vesting shares: $3,613,567
New stock options: 94,022
Total 2014 shareholder return: –1.4 percent
Note: Plymouth-based Mosaic operates in the crop nutrition industry, and prices for its potash and phosphate products are highly cyclical and heavily influenced by economic and political influences that affect its share price and long-term equity awards for executives.
As of Dec. 31, 2014, stock options granted in five of the last six years were "underwater," meaning the exercise price was higher than Mosaic's share price at the end of the year and the value of restricted shares are generally lower than when first granted.
Mosaic typically issues 10-year stock options. Despite the recent struggles of Mosaic's share price, Prokopanko was still able to exercise $8 million worth of previously issued stock options in 2014 — which made up the biggest portion of his overall realized compensation for 2014.
Prokopanko got new stock options and awards that were granted in February 2014 and also a one-time award of performance shares valued at $5.3 million for a special cost reduction program aimed at achieving $226 million in operating costs by 2016. The Star Tribune does not include the value of those awards until the shares vest or options are exercised.