Home Depot CEO pay package up 5 percent in 2010

AP News
Posted: Mar 29, 2011 2:42 PM
Home Depot CEO pay package up 5 percent in 2010

Home Depot CEO Frank Blake received compensation worth nearly $10.5 million in 2010, a 5 percent increase from the prior year, according to an analysis by the Associated Press.

Blake, 61, received a base salary of nearly $1.1 million and a performance-based bonus of nearly $2.2 million in the fiscal year that ended Jan. 31, according to a filing by the home-improvement retailer with the Securities and Exchange Commission late Monday.

The bulk of his compensation came in the form of stock awards and stock options valued at nearly $7 million when they were granted. He also received other compensation worth $241,687, including $125,000 in the company's perks program, which he has the option to apply to financial planning, medical services, car and related expenses, insurance and other options. The total also included $77,491 for personal use of the company aircraft.

In 2009, Blake, who has been CEO since 2007, received compensation worth about $9.9 million.

Home Depot said about 89 percent of Blake's compensation was tied to achieving specific financial targets and share price performance.

Home Depot faced falling sales during the recession and as the housing market remains in a slump, but its results are slowly improving. In 2010 the Atlanta company recorded its first annual revenue increase since 2006.

Home Depot's net income rose 25 percent from 2009 to $3.34 billion in 2010, and its revenue rose nearly 3 percent to $68 billion. Its shares rose 21 percent during 2010.

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 many cases than the total reported by companies to the Securities and Exchange Commission.