LIFE TIME FITNESS INC.Bahram Akradi, chairman, CEO
Total compensation: $2,284,592 for the year ended Dec. 31
Non-equity incentive pay: $835,479
Other compensation: $63,582
Value realized on vesting shares: $635,531
Total return to shareholders: 92.5 percent
Note: In 2008 Akradi elected to forgo a salary and take nearly all of his compensation in restricted stock, in part as a show of faith in the company's fortunes. Life Time's sales and earnings have increased in the last three years, but the rate of growth has slowed as the company has reduced the number of new fitness center openings in response to the difficult economy.
For 2009, the company paid Akradi a base salary of $750,000, less than his last base salary in 2007 of $926,667. The compensation committee stated that the reduction in base salary was warranted because of the company's financial performance in 2008. But as an incentive, the compensation committee increased the percentage of Akradi's target bonus. In 2009, the company achieved earnings before taxes of $119.8 million, above the target amount, which resulted in a bonus payout of $835,479.
Life Time recorded as expenses $1,999,997 worth of stock awards in 2009 for Akradi's long-term incentive compensation, the lowest award to Akradi in the last several years.
In 2008, the company failed to meet earnings targets, and as a result, 25 percent of Akradi's March 14, 2008, restricted stock award was forfeited in February 2009. In 2009, the company exceeded its target for the long-term incentive awards, so no restricted shares were forfeited.