The CEO of railroad CSX Corp. received total compensation valued at $7.7 million in 2010, a 9 percent raise from 2009, according to an Associated Press analysis of a company regulatory filing.
Michael Ward's pay boost came in a year the railroad saw its earnings jump as the U.S. economy improved.
According to CSX's filing with the Securities and Exchange Commission, Ward earned a base salary of $1.1 million, the same as in 2009. His performance-based cash bonus, though, soared 76 percent to $2.1 million.
The bulk of Ward's compensation came in the form of stock awards, which were valued at $4.3 million when they were granted. That's down 6 percent from $4.6 million in 2009.
In addition, Ward also received about $158,000 in perks, which included the company match to Ward's retirement plan, certain charitable contributions and use of corporate aircraft.
There was a near across-the-board recovery in shipments last year on CSX's lines. Higher prices to ship everything from auto parts to fertilizer allowed the Jacksonville, Fla., company to grow its earnings at a faster pace than it gained new business.
For all of 2010, CSX earned net income of $1.56 billion, up 37 percent from 2009 earnings of $1.14 billion. Revenue rose 18 percent to $10.63 billion.
The AP 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.