Graco's McHale drew $5.6M in '19

Patrick McHale Graco Inc.

President, CEO

Total compensation: $5,626,446 for the year ended Dec. 31

Salary: $840,500

Nonequity incentive pay: $403,944

Other compensation: $25,188

Exercised stock options: $4,356,814

New stock options: 409,830

CEO pay ratio: 131-1

Median employee pay: $64,849

Total 2019 shareholder return: 25.9%

Note: McHale had the largest realized pay among Minnesota public company CEOs in 2018 when he realized $35 million. In 2019 it dropped to $5.6 million mainly because he exercised fewer long-held stock options.

The Star Tribune counts the value of long-term equity awards when realized and not when granted. The total in the compensation table of the annual proxy includes the value of equity awards when granted and the present value of pension plan contributions. That total is used to calculate the CEO pay ratio. According to that formula McHale's compensation for 2019 was $8.5 million, up from $6.4 million. That total increased mainly from the calculation of his qualified and nonqualified pension plans. As a result the CEO pay ratio increased from 103 to 131 to 1.

There are lots of ways to count pay. McHale's combined salary and cash performance bonus decreased 39% in 2019. McHale received a modest increase in his base salary but his annual cash incentive bonus decreased from $1.2 million to $403,999, as Graco's annual sales and earnings measures fell short of targets set for the year.

Patrick Kennedy