Safeway's CEO pay rises 5 percent in 2010

AP News
Posted: Apr 01, 2011 4:39 PM
Safeway's CEO pay rises 5 percent in 2010

Safeway Inc.'s CEO Steven Burd saw the value of his compensation rise 5 percent in 2010, according to an Associated Press analysis of a regulatory document filed Friday.

The grocery chain gave Burd a pay package worth $9.9 million, up from $9.4 million in 2009.

Burd's salary rose 3 percent to nearly $1.5 million. The majority of his pay continued to be from his options awards, which were valued at $7.1 million. That's up 3 percent from the value of options granted in the prior year. The value of his stock awards granted fell 25 percent to $370,050.

Burd also received $191,132 in other compensation, including perks including home security and personal use of the company aircraft.

Safeway more than doubled Burd's performance-based cash bonus from $358,627 in 2009 to $750,000 in 2010 as business improved.

The company, based in Pleasanton, Calif., returned to a profit in 2010 after struggling to keep up with competitors during the recession. Safeway reported net income of $589.8 million for the fiscal year, compared with a loss of $1.1 billion in the previous year. Annual revenue climbed 1 percent to $40.85 billion.

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.