TENNANT CO.
H. Chris Killingstad, president, CEO Total compensation: $1,652,818 for the year ended Dec. 31.
Salary: $515,769.
Non-equity incentive pay: $474,148.
Other compensation: $66,587.
Value realized on vesting shares: $596,314.
Total 2007 return to shareholders: 54.4 percent
Note: In 2007, the board's compensation committee used Towers Perrin to provide a comprehensive study of performance measures in its compensation plan. Towers Perrin was also asked to look at director compensation and recommended no changes to director compensation for 2008, but it did suggest the board adopt an ownership goal for non-employee directors of five times the annual cash retainer ($30,000), to be obtained within five years.
Regarding executive compensation, the compensation consultants recommended the company continue using its decade-long model of basing long-term and short-term incentive pay on economic profit. The plan allows awards from 0 to 200 percent of target. Under that metric, the company showed an economic profit improvement of $3.4 million in 2007 as compared with 2006, and as a result, the executives earned payouts of 93.58 percent of target.
PATRICK KENNEDY
