Richard Olson
Toro Company
Chairman, president, chief executive
- Total compensation for the year ended Oct. 31, 2021: $6,999,075
- Salary: $1,045,930
- Non-equity incentive pay: $2,095,541
- Other compensation: $300,778
- Exercised stock options: $1,234,985
- Value realized on vesting shares: $2,321,841
- New stock options: $134,300
- Median employee pay: $47,443
- CEO pay ration: 182 to 1
- Total fiscal 2021 shareholder return: 17.5%
Note: Olson saw his total realized compensation increase nearly 100%, from $3.5 million in 2020. The annual incentive bonus was $2.1 million, up from $307,094 the previous year.
As pandemic restrictions receded, financial performance improved in the last fiscal year as demand for Toro's lawnmowers and snowblowers increased. In the fiscal year ending Oct. 31, the company exceeded its financial targets for sales, earnings and capital growth.
During the last fiscal year, Toro's revenue increased 17% to $3.96 billion, and earnings per share jumped 25% to $3.78 a share. The financial performance resulted in annual incentive awards to executives above targeted amounts and were one of the biggest reasons for Olson's compensation increase for the year.
Olson's base salary went from $871,250 to $1,045,930. He took a salary reduction of 30% from March 2020 to November 2020 during the pandemic, and his annual incentive bonus for that fiscal year was far below target amounts because of the effects of the pandemic.
In November 2020, salaries were restored to previous levels and annual salary increases were again given, including a 3.4% increase to Olson's base salary rate.
Olson also earned more from options he exercised and restricted stock that vested during the year due to performance and increasing value of Toro's shares. For the long-term equity awards the board didn't make any changes to the reward formulas because of the pandemic.
