Who: Paul Finkelstein, former chairman, CEOTotal compensation: $7,130,238 for the year ended June 30, 2012
Salary: $840,880
Non-equity incentive pay: $177,736
Other compensation: $2,305,398
Exercised stock options: $0
Value realized on vesting shares: $3,806,224
New stock options: 0
Total return to shareholders: 18.9 percent
Note: Finkelstein stepped down as CEO of the Edina-based operator of hair salons on Feb. 8, and as chairman and director April 30. His compensation was a point of contention in a proxy battle last year with activist investor Starboard Value.
The proxy fight led to a management shake-up and Finkelstein's departure after Starboard gained seats on the board of the big hair-salon operator. And shareholders overwhelmingly rejected the company's "say on pay" proposal as 72 percent of them voted no in the nonbinding advisory vote on compensation.
The bulk of Finkelstein's "other compensation" included a severance payment of $1,988,933 and tax gross-ups -- or reimbursements for taxes paid -- of $109,185. Finkelstein's restricted stock awards included $2,847,900 that vested in connection with his retirement.
Finkelstein's base salary represented a partial year; his final base salary rate was $1,285,000.
The company eventually hired Daniel Hanrahan, most recently CEO and president of Celebrity Cruises as CEO. Hanrahan, who started in August, will get an annual salary of $850,000 at Regis and be eligible for an annual incentive bonus of 125 percent of his salary.
Regis has also adopted changes to its executive compensation program. The company selected a new peer group, froze the supplemental retirement benefit program as of June 30, eliminated tax gross-ups on supplemental life insurance and other perquisites; reduced the amount of severance in case of change of control and eliminated tax gross-ups on "excess parachute" payments.
PATRICK KENNEDY
