Marriott CEO receives 2010 pay package of $9.6M

AP News
Posted: Apr 04, 2011 11:50 AM
Marriott CEO receives 2010 pay package of $9.6M

The CEO of lodging operator Marriott International Inc. received compensation valued at about $9.6 million in fiscal 2010, more than six times the amount from the previous year, according to an Associated Press analysis of regulatory filings.

J.W. Marriott Jr.'s compensation package climbed considerably from 2009 because he did not receive a performance-based bonus or stock options and stock awards that year.

Marriott received a salary of about $1.3 million in 2010. This is 6 percent higher than the approximately $1.2 million salary he was paid in 2009.

His 2010 performance-based bonus totaled about $2.3 million.

Marriott received stock and option awards worth approximately $5.8 million when they were granted.

The 79-year-old executive's other compensation totaled $349,004. This included $107,778 for personal use of the company jet, $133,984 for executive life insurance, $96,500 for personal financial services, $8,908 in company contributions to a 401(k) plan and $1,837 in company contributions to an executive deferred compensation plan.

In 2009 Marriott received $292,694 in perquisites, or "perks."

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.

Marriott, whose brands include Ritz-Carlton and its namesake, posted a full-year profit of $458 million, or $1.21 per share. That compares with a loss of $353 million, or 97 cents per share, for the previous year. Adjusted earnings were $1.15 per share. Annual revenue climbed to $11.69 billion from 410.91 billion.

In February Marriott said it will spin off its struggling timeshare development and management company later this year. The remaining business will concentrate on lodging management and franchising.

Marriott, which is based in Bethesda, Md., will hold its annual shareholders meeting on May 6 in Washington D.C.