Most of his compensation was from exercising previously issued stock options.
Patrick McHale, Graco president, CEO
Total compensation: $34,881,029 for the year ended Dec. 28
Salary: $816,000
Nonequity incentive pay: $1,224,000
Other compensation: $14,411
Exercised stock options: $32,826,618
New stock options: 351,830
Median employee pay: $62,260
CEO pay ratio: 103:1
Total 2018 shareholder return: -6.3 percent
Note: McHale's total realized compensation was down 26 percent from the $47.2 million he made in 2017. In both years, McHale benefited from previously issued stock options that he elected to exercise. Last year, he exercised 1.3 million shares worth $32.8 million.
The Minneapolis-based manufacturer had record results in 2018. Sales for the year were $1.65 billion, up 12.1 percent, and earnings per share were up 36 percent. That performance helped McHale earn his largest cash incentive award as the company exceeded targets.
The company disclosed its CEO pay ratio, a calculation of the CEO's total pay that includes the present value of long-term equity awards granted during the year, compared to the compensation of the company's median employee. McHale's total compensation used for that calculation was $6.4 million and resulted in a CEO pay ratio of 103:1.
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