James Owens, H.B. Fuller Co. president, CEO
Total compensation: $4,613,331 for the year ended Dec. 1
Nonequity incentive pay: $948,233
Other compensation: $373,222
Restricted stock: $0
Long-term incentive pay: $0
Exercised stock options: $0
Value realized on vesting shares: $2,179,468
New stock options: 146,887
Total fiscal 2018 shareholder return: -13.7 percent
Note: Owens realized $4.6 million in fiscal 2018, a 21.3 percent decrease from the $5.9 million he realized in the prior year. Owens earned a smaller annual cash incentive bonus but also realized less from restricted stock awards that vested during the year compared to the previous year.
The St. Paul-based maker of adhesives, sealants and other chemicals for industrial purposes exceeded the threshold level to award annual cash incentive awards but only 85.3 percent of the targeted amounts for organic revenue growth, adjusted operating income and adjusted earnings per share. Owens’ annual cash incentive bonus was $37,359 less than the previous year.
The biggest change to Owens’ realized compensation was from previously issued long-term equity awards that vested last year. He realized $2.2 million in fiscal 2018, down 38 percent from the prior year.
At the company’s annual meeting in April, shareholders gave the annual executive compensation proposal only limited support of 59 percent approval, down from historical support range above 91 percent. In response to last year’s low support, the compensation committee contacted the company’s 10 largest shareholders and reviewed best-compensation practices. As a result of that feedback, the board of directors elected to remove tax gross-up and single-trigger provisions in change-of-control agreements from future executive compensation agreements.