The CEO of Mattel Inc., the largest U.S. toy maker, received compensation valued at $10.8 million in 2010, up 20 percent from 2009, according to an analysis by The Associated Press of a company filing.
Robert A. Eckert, 56, chairman and chief executive of Mattel Inc. since 2000, received a base salary of $1.25 million both years. The bulk of his pay came in stock and option awards valued at nearly $6 million when they were granted, according to a document the company filed late Wednesday with the Securities and Exchange Commission.
Mattel's board of directors took into account the company's financial performance for the year in determining compensation for Eckert and other executives. Mattel's net income rose 30 percent to $684.9 million and its revenue rose 8 percent to $5.86 billion between 2009 and 2010.
"2010 was a strong year for Mattel, financially and operationally," the company said in the SEC filing.
Eckert's performance-based bonus grew by $750,000, or 30 percent, to $3.25 million in 2010.
Toys proved relatively recession-proof, but Mattel, based in El Segundo, Calif., outperformed some of its competitors in 2010. Revenue from some of its classic brands such as Barbie was strong, as was revenue from new properties like its "Monster High" dolls and accessories.
Eckert also received other compensation of $301,499, including $74,366 for personal use of company aircraft, a $30,000 car allowance and more than $150,000 in retirement savings contributions.
The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.
The value that a company assigned to an executive's stock and option awards for 2010 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.