Graco CEO Patrick McHale got a 2.5 percent increase in base salary for 2011 and will get a 3 percent salary increase for 2012.
David Joles, Star Tribune
CEO pay watch: Graco's Patrick McHale
- March 7, 2012 - 11:10 PM
Total compensation: $1,915,808 for the year ended Dec. 31
Non-equity incentive pay: $986,615
Other compensation: $11,706
Exercised stock options: $259,744
New stock options: 126,000
Total 2011 return to shareholders: 5.7 percent
Note: McHale took home 18.5 percent more than in 2010 mainly from $259,744 worth of options he exercised in 2011; he did not exercise options in 2010.
McHale got a 2.5 percent increase in base salary for 2011 and will get a 3 percent salary increase for 2012. The company's compensation consultant projects that McHale's base salary will still be below the 50th percentile for Graco's peer group.
Graco's 2011 revenue rose 20 percent to $895.3 million and its earnings per share rose 37 percent to $2.32 per share, which helped McHale achieve the maximum bonus for the year.
Graco's compensation committee on Feb. 28, 2011, awarded McHale a grant of 20,000 shares of performance-based restricted stock. Those shares had a present value of $814,200 and are not included in the total compensation figure above. The award was intended to recognize McHale for his leadership over the past several years, particularly during the recession. The decision was made, in part, because McHale had recommend that the committee keep his base salary flat in 2010 and he declined any bonus award for 2009. The restricted shares will vest Feb. 28, 2014, provided the company reaches annual sales of $920 million by 2013.
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