Becton Dickinson CEO gets 2009 compensation boost

AP News
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Posted: Dec 11, 2009 2:18 PM

Becton Dickinson & Co. Chairman, President and CEO Edward J. Ludwig received a 19.2 percent boost in compensation to just under $9.1 million in 2009 as the medical company's profit rose.

Ludwig, 58, received $1,070,000 in base salary, marking a 1 percent raise, according to a proxy statement filed Thursday with the Securities and Exchange Commission. Meanwhile, his cash incentive award fell 1.7 percent to $1.5 million. Other compensation, which consisted mainly of a matched retirement contribution from the company, more than doubled to $33,055.

The bulk of Ludwig's compensation again came in the form of stock options and awards, valued at just under $6.5 million the day they were granted. That marks a 29 percent boost from the prior year.

The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last 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.

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 filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.

The Franklin Lakes, N.J.-based company's fiscal year ended Sept. 30. During the year, the medical device maker's profit jumped 9 percent on a mix of surgical and other medical product sales. Flu concerns, in particular, helped drive sales of syringes and prefillable drug delivery devices. Overall, revenue rose 1 percent to $7.16 billion.

Still, the company's stock fell 13 percent during the fiscal year, closing at $69.75 Sept. 30.

The shares were up 16 cents at $77.82 in afternoon trading Friday.