Kimberly-Clark Corp., which makes Huggies diapers and Kleenex tissues, gave Chairman and CEO Thomas J. Falk total compensation valued at approximately $9 million for 2010, nearly the same as what he received in the previous year, according to Associated Press calculations of data contained in a Friday regulatory filing.
Falk received a salary of approximately $1.3 million, a 5 percent increase from the prior year's salary of about $1.2 million.
His performance-related bonus was approximately $1.3 million, according to a filing with the Securities and Exchange Commission. This is about 54 percent lower than the prior year's performance-related bonus of about $2.8 million.
Kimberly-Clark said in the filing the board's Management Development and Compensation Committee concluded that last year was "challenging" and that management underdelivered its 2010 financial targets.
"Because the Committee concluded that performance was below target, the Committee approved annual cash incentives below the target amount," the company said in the filing.
Falk, 52, received stock and option awards valued at approximately $6.1 million when granted. This is up 25 percent from about $4.9 million a year earlier.
Falk's other compensation totaled $306,172, which included $275,057 for defined contribution plans, $17,562 for personal use of the company aircraft and $13,553 for security services. Falk is expected to use Kimberly-Clark's company plane for personal travel under an executive security program created by its board. The security services are required by the company's security program.
In the prior year Falk received $78,394 in other compensation, or "perks."
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 bonus, 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 that companies list in the summary compensation table of proxy statements filed with regulators.
Kimberly-Clark unveiled restructuring plans in January that will be used to help deal with rising costs tied to its pulp and tissue business. The restructuring, in which it plans to streamline, sell or close five or six plants, comes as the company contends with rising costs for wood pulp and oil, major materials for its products.
Kimberly-Clark also plans to shed some products, mostly nonbranded items, and transfer some production to lower-cost plants to boost profitability.
For the year ended Dec. 31, Kimberly-Clark's net income fell 2 percent to $1.84 billion, or $4.45 per share, from $1.88 billion, or $4.52 per share. Adjusted earnings were $4.68 per share, which excludes a first-quarter charge for a balance sheet change in Venezuela related to that country's currency devaluation.
Revenue increased 3 percent to $19.75 billion.
Kimberly-Clark, which is based in Dallas, will hold its annual shareholders meeting on April 21 in Irving, Texas.