Total compensation: $4,247,052 for the year ended Dec. 31, 2015
Salary: $750,400
Non-equity incentive pay: $910,538
Other compensation: $18,864
Exercised stock options: $2,567,250
New stock options: 145,071
Total 2015 shareholder return: -8.6 percent
Note: Last year, the Graco board recommended a 3 percent increase to McHale's base salary, which brought it closer to the median of his peer group.
The Graco board looks at its own compensation every three years. Last year, a board committee asked compensation consultants Willis Towers Watson for a peer group analysis to compare how much outside directors were being compensated. That data "concluded that total director compensation fell below the median of the peer group." As a result, the board approved increases to director compensation, so starting in May, the annual retainer for nonemployee directors will increase from $50,500 to $65,000. The board also increased the economic value of long-term equity awards to nonemployee directors. The board did eliminate some board and committee meeting fees and replaced those with annual retainers of $5,000 to $10,000 for sitting on various board committees.
The compensation consultants say that, after the increases, the cash and equity compensation for Graco's board of directors will be about at the 50th and 75th percentiles, respectively, of their peer group.
The school is changing an elective course while still working with the Eden Prairie-based health care giant after students raised concerns.
