Joel Ronning, CEO Total compensation: $965,822 for the year ended Dec. 31
Salary: $450,000
Non-equity incentive pay: $356,484
Other compensation: $9,838
Exercised stock options: $0
Value realized on vesting shares: $149,500
New stock options: 0
Total return to shareholders: 8.8 percent
Note: Ronning's total compensation for 2009 was down from $5.7 million in 2008 mainly because he exercised $4.7 million worth of options in 2008 and none last year. Ronning's salary has been the same since 2008, and the compensation committee set his 2010 salary at the same amount. His 2009 annual incentive bonus was down 1.5 percent from the previous year.
Digital River's compensation committee awarded no new options in 2009 but awarded performance-based restricted stock. It is a notable change in Digital River's compensation philosophy because options have been a big part of Ronning's long-term compensation. Ronning exercised stock options worth $14.9 million in 2005, $31.7 million in 2007, and $4.7 million in 2008.
Digital River recorded an expense of $4,532,400 for restricted stock awarded in 2009. In February, the compensation committee determined that Digital River met 86 percent of the performance goals established in March 2009, which meant Ronning forfeited 25,065 of the 180,000 shares initially awarded.
Digital River's 2009 annual revenue was $403.8 million, up 2.4 percent, but profits decreased 16.6 percent to $53 million, and the company learned that Symantec, one of its largest customers, won't be renewing its e-commerce agreement when it expires in June. But in the company's year-end earnings release the company said it had a record fourth quarter that exceeded expectations and for the first time since the recession started it is seeing year-over-year growth.
PATRICK KENNEDY
Lawmakers questioned the Eden Prairie-based company’s business practices and whether its large size adds to affordability troubles.
