CEO Pay Watch Patrick McHale, Graco Inc.
- March 18, 2014 - 10:48 AM
CEO Pay Watch Graco Inc.
Patrick McHale, president, CEO
Total compensation: $3,014,265 for the year ended Dec. 27
Non-equity incentive pay: $997,475
Other compensation: $33,961
Exercised stock options: $1,281,629
New stock options: 135,000
Total 2013 shareholder return: 54.1 percent
Note: Minneapolis-based Graco paid approximately $650 million in April 2012 for the Finishing Business of Illinois Tool Works and is now seeing the benefits. The maker of industrial and commercial fluid handling products had 2013 revenue of $1.1 billion, up 9 percent from 2012, and diluted earnings per share of $3.36 rose 39 percent.
In 2012, McHale’s salary was below the median of his peer group as determined by compensation consulting firm Towers Watson. In December 2012, the board gave McHale a 3.5 percent increase to his base salary and a 3 to 4 percent increase effective Jan. 1.
Graco’s revenue and earnings per share were above the targets set for the year earning McHale an annual bonus worth 142 percent of his base salary.
The company’s stock had a 54.1 percent return to shareholders which helped McHale realize nearly $1.3 million from previously issued stock options, his largest realized gain since being named CEO in June 2007.
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