The CEO of the No. 2 home-improvement chain Lowe's Cos. received a pay package valued at $12 million in 2010, up 3 percent from the year before, according to an analysis by The Associated Press.
Niblock, 48, received a base salary of $1.1 million and a performance-based bonus of $2.2 million, according to a filing with the Securities and Exchange Commission on Monday.
The bulk of his award came from stock and option grants valued at $8.5 million on the date they were granted.
Niblock, who joined Lowe's in 1993 and became chairman and CEO in 2005, received other compensation worth $195,052, including retirement contributions and $44,873 for personal use of corporate aircraft.
During the year, home owners spent more on home-improvement projects but remained focused on smaller maintenance and repair projects and held back on bigger-ticket renovation.
Net income for Lowe's, based in Mooresville, N.C., rose 13 percent to $2.01 billion in 2010. Revenue rose 3 percent to $48.82 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.