Select Comfort COrp.
Shelly Ibach, president, CEO
Total compensation: $2,126,027 for the year ended Dec. 31
Non-equity incentive pay: $473,170
Other compensation: $11,436
Exercised stock options: $897,239
Value realized on vesting shares: $222,121
New stock options: 31,426
Total return to shareholders: 20.7 percent
Note: Ibach became CEO on June 1, 2012, succeeding the retiring William McLaughlin. With Ibach’s appointment to CEO, her base salary was increased to $600,000 per year and she received a similar increase in the amount of annual bonus she could achieve, up to 75 percent of her base salary.
The company also approved long-term equity incentive grants including stock awards valued at $466,316 and option awards valued at $501,126. The ultimate realized value of those awards will depend on the company’s financial and stock performance over the next several years.
McLaughlin’s compensation for the year was $9.1 million, and it included $1 million in stock options that he exercised during the year and $7.2 million from restricted shares that vested during the year.
As recognition of McLaughlin’s tenure as CEO, during which the company created over $1.3 billion in market value, the board of directors awarded McLaughlin a final stock option and restricted stock award, accelerated the vesting of certain options and stock awards and extended the expiration date of option awards originally granted in 2006.
The compensation committee approved the changes “to compensate Mr. McLaughlin for prior actions initiated by him in the interest of the company, including his decision to forego salary for the vast majority of 2008.”