FedEx's CEO's compensation fell 2 percent in 2011, mostly because his perks were worth less than in 2010, an Associated Press calculation shows.
Fred Smith, who also is the company's chairman and president, received compensation valued at $7.3 million for the fiscal year that ended in May, down from $7.4 million in fiscal 2010, according to a filing the company made Friday with the Securities and Exchange Commission.
Smith's salary rose 4 percent to $1.2 million, and the value of his stock options rose less than 2 percent to $5.2 million, the biggest chunk of his compensation.
But his performance-based cash bonus fell 6 percent to $375,000, and his other compensation slid 37 percent to $428,061. His perks already had dropped almost by half between 2009 and 2010. In 2011, they included retirement plan contributions, tax reimbursements, jet travel, use of a company car, security services, tax preparation services, financial counseling and insurance premiums.
FedEx Corp., based in Memphis, Tenn., said its 2011 net income rose 23 percent to $1.45 billion for the year, while its revenue grew 13 percent to $39.3 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.
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