CEO pay watch: Randall Hogan, Pentair Ltd.
- Article by: Patrick Kennedy
- Star Tribune
- February 27, 2013 - 8:31 PM
Randall Hogan, chairman, CEO
Total compensation: $14,664,121 for the year ended Dec. 31
Non-equity incentive pay: $3,425,000
Other compensation: $347,133
Exercised stock options: $8,329,290
Value realized on vesting shares: $1,458,198
New stock options: 193,777
Total return to shareholders: 50.5 percent
Note: Hogan’s total compensation increased nearly 40 percent from 2011 as Pentair completed its largest acquisition with the merger of Tyco’s Flow Control business last year. As a result of the merger, the compensation committee made changes to its executive compensation program, including modifying the peer group to reflect new size of the company and changing some of the incentive compensation criteria.
In October 2012 and February 2013, the committee approved adjustments to executive salaries, annual and long-term incentive targets and the annual allowance under their flexible perk program that were based on the comparisons from the new peer group. So for 2013, Hogan’s annual salary will rise to $1,118,000 and his allowance for perquisites will increase from $35,000 to $50,000.
Hogan also received additional restricted stock units in 2012, granted in connection with the merger that had a grant date value of $6.3 million. Those shares will vest in three to four years. Those shares, and similar awards to other officers, were granted to ensure that key officers stayed with the company after the merger was completed.
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