ConocoPhillips' top executive received a 25 percent increase in compensation last year as higher oil prices helped the Houston company nearly triple its net income.
Chairman and CEO Jim Mulva received $17.9 million in 2010, according to an Associated Press analysis of a company filing. Mulva's compensation increase came mostly from a jump in a performance-based cash bonus of $4.3 million. He received a $1.3 million bonus in 2009.
Mulva received a $1.5 million salary, stock awards of $6.2 million and option awards worth $5.7 million. He also received perks of $294,000, including the personal use of company cars and aircraft, life insurance premiums and medical services.
Under Mulva's, ConocoPhillips has been aggressively shedding assets as it realigns itself to focus on oil sands and shale gas production in North America. It also has been buying back shares to boost its stock price. Despite a drop in oil production, Conoco earned $11.4 billion in 2010 compared with $4 billion 2009.
Company shares have jumped about 53 percent in the last 12 months.
Details of Mulva's compensation were in a Securities and Exchange filing last week.
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.
Shares rose 5 cents to $79.73 in afternoon trading.