United Technologies Corp. gave its chief executive total compensation of $19.5 million in 2010, up 9 percent from the previous year, including a bonus that more than doubled as earnings per share exceeded the 10 percent threshold set by the conglomerate, according to a regulatory filing.
The Hartford-based parent company of jet engine maker Pratt & Whitney, Otis elevator, Sikorsky Aircraft and other businesses paid CEO Louis Chenevert a salary of nearly $1.6 million in 2010, up about 11 percent from 2009, due to the company's "favorable overall assessment of his performance."
Chenevert, 53, also was paid a $4 million bonus, more than twice the $1.7 million paid in 2009. Among the company's criteria were 10 percent growth in earnings per share, which United Technologies said "presented a significant but realistic challenge" and matched analysts' earnings expectations. Per share earnings of United Technologies rose 15 percent in 2010.
United Technologies said Carrier, its heating and air conditioning business, generated earnings growth greater than 30 percent. The company said it set 5 percent earnings growth and other targets for Pratt & Whitney and Otis that reflected difficult market conditions for the two businesses. Pratt & Whitney slightly exceeded its target and Otis achieved the growth target, the company said.
The Associated Press executive compensation 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, making the AP total different in most cases from the total reported by companies to the Securities and Exchange Commission.
Chenevert, who was elected chief executive in 2008 and also serves as chairman, received a performance-based cash bonus of $1.3 million, up slightly from 2009. And he received compensation of $407,976 that included his use of the company's plane, insurance premiums and contributions to his company savings plan account.
United Technologies weathered the recession through restructuring and job cuts. It cut about 2,500 jobs in 2010 and more than 11,500 in 2009. However, with the acquisition last year of the GE security business, United Technologies increased its employment to 208,200 in 2010, up 1,500 from the previous year.
Each of its businesses felt the impact of the downturn, with fewer elevator sales as office construction slowed, reduced heating and air conditioning equipment sales in a weakened commercial real estate market and airline industry cutbacks leading to fewer jet engine sales.
It posted its first quarterly profit increase in a year in its first quarter of 2010.
For 2010, United Technologies posted net income of $4.37 billion, up 14 percent from the previous year.