Air Products & Chemicals Inc. CEO John McGlade's total compensation package slid 17 percent in 2009 to $10.1 million from $12.2 million in the previous year, according to Associated Press calculations of figures disclosed in a regulatory filing Thursday.
The drop in pay comes in a year in which the Allentown, Pa.-based company, which supplies oxygen and other gases to the industrial and medical sectors, saw its profit tumble 31 percent amid a severe economic downturn. For its fiscal 2009 year ended Sept. 30, the company reported earnings of $631.3 million, or $2.96 per share, down from $909.7 million, or $4.15 per share, in 2008.
However, shares rose 14 percent over the course of the year.
According to a proxy statement the company filed with the Securities and Exchange Commission, McGlade received a base salary of $1.2 million and stock options and restricted stock worth $8.8 million on the days they were granted. Also included in McGlade's compensation package was $3,441 in above-market returns on deferred compensation. All other perks, including use of the company aircraft, life insurance, matching contributions and tax reimbursements, amounted to $123,012.
The Associated Press executive compensation formula is designed to isolate the value the company's board placed on the executive's total pay package during the fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year on the date they were granted.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.