Business

CEO Pay Watch: Mark Lucas, Imation Corp.

March 18, 2015 at 2:36PM

Mark Lucas, president and CEO Imation Corp. (The Minnesota Star Tribune)

CEO Pay Watch Imation Corp.

Mark Lucas, president and CEO

Total compensation: $3,906,020 for the year ended Dec. 31

Salary: $754,815

Bonus: $50

Non-equity incentive pay: $2,340,785

Other compensation: $44,494

Value realized on vesting shares: $765,876

Total shareholder return: –19 percent

Note: Last May, just under half the shares voted at Oakdale-based Imation's annual meeting were against the "say-on-pay" proposal on executive compensation. As a result, the board's compensation committee asked the company and management to meet with major shareholders to get feedback on their compensation programs.

Shareholders had objected to pay of management and the board. The company is in the midst of a multiyear strategy of weaning itself from lower-margin sales of its legacy optical and tape data storage devices to higher margin sales of its mobile security solutions.

In response to the shareholder feedback, the board froze Lucas' base salary for 2014 and 2015, eliminated some tax gross-ups and adjusted the peer group used for compensation comparisons. It also approved a reduction in equity grants and meeting fees for its members, including the fees to the nonexecutive chairman of the board.

Lucas' overall compensation still increased 48.3 percent from the previous year. His salary stayed the same, but his annual incentive pay rose from $1.4 million to $2.3 million.

Patrick Kennedy