H. Chris Killingstad Tennant Co.
Total compensation: $2,546,846 for the year ended Dec. 31
Nonequity incentive pay: $783,359
Other compensation: $116,782
Value realized on vesting shares: $936,188
New stock options: 69,027
Total 2016 shareholder return: 28.3 percent
Note: Killingstad took home about 13 percent less than in 2016 after earning a smaller bonus and realizing less from the value of restricted stock that vested during the year.
Tennant’s board approved base salary increases in 2016 for executives but they chose not to accept them given the uncertain economic environment in which the company has been operating and cost reductions made.
In 2013, Tennant announced a goal to achieve $1 billion in annual sales and a 12 percent operating profit margin. The company made progress in 2013 and 2014, but growth slowed in 2015 and 2016 because of global economic conditions.
That slower growth also meant Tennant didn’t achieve the targeted financial incentive goals for 2016 leading to smaller executive bonuses and the return on invested capital from 2014-2016, which is used for the company’s long-term incentive plan, also came in under target.