CEO Pay Watch Patrick McHale, Graco Inc.

Total compensation: $3,014,265 for the year ended Dec. 27

Salary: $701,200

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

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.