McDonald's Corp.'s CEO received a pay package worth nearly $9.7 million during fiscal 2010 _ 45 percent less than the year before, based on an Associated Press analysis of a recent regulatory filing.
The nation's largest hamburger chain increased CEO Jim Skinner's salary 3 percent to $1.4 million. The company also raised his performance-based cash bonus for the year by 38 percent to $4.5 million.
But his total compensation package dropped because of the timing of a separate long-term bonus.
McDonald's gives its executives a long-term bonus once every three years. Skinner received an $8.3 million long-term bonus in 2009 and isn't due another until 2012. As a result, the value of all the bonuses he was given fell from $11.5 million in 2009 to $4.5 million in 2010.
The value of his perks, stock and options also fell, by a combined total of $850,000.
Skinner received $1.4 million in stock, 15 percent less than in 2009. The company valued his stock options received during the year at $1.7 million, a 22 percent drop from 2009. The value of Skinner's other perks _ including personal use of the company aircraft, physical exams and security _ fell 15 percent to $631,641.
Skinner's total 2009 compensation was roughly $17.6 million.
McDonald's had a stellar year as new products and affordable food drew even more customers and it outperformed competitors. For the fiscal year, McDonald's net income climbed 9 percent to $4.95 billion, or $4.58 per share. Revenue rose 6 percent to $24.07 billion.
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, making the AP total different in most cases from the total reported by companies to the Securities and Exchange Commission.