Michael Hoffman, chairman, president, CEO, The Toro Co.
Total compensation: $8,316,834 for the year ended Oct. 31
Non-equity incentive pay: $1,189,980
Other compensation: $208,413
Exercised stock options: $2,323,428
Value realized on vesting shares: $3,695,013
New stock options: 96,600
Total fiscal 2013 return to shareholders: 41.3 percent
Note: Hoffman’s take-home compensation for the fiscal year rose 2.2 percent over $8.1 million he took home the previous year. His 2013 base salary rose by $35,000.
Toro, the Bloomington-based maker of turf, landscape and construction equipment, largely met or exceeded annual performance goals, which helped Hoffman earn an annual bonus of $1.1 million. He also earned $3.6 million from performance-based restricted stock that vested as a result of meeting or exceeding financial goals for fiscal 2011-13.
Toro’s annual revenue growth of 4.2 percent was within the targeted range as the company achieved record annual revenue of $2.04 billion and earnings per share of $2.62 exceeded the annual target.
The company also met or exceeded three-year financial goals under the long-term incentive plan. Hoffman also earned $2.3 million from exercising stock options. Toro’s stock had a total return of 41.3 percent in 2013 and 29.1 percent on an annualized basis over the prior three years.
At Toro’s annual meeting in March, 94 percent of shareholders approved executive compensation in a nonbinding advisory vote.