Used car dealership chain CarMax Inc. gave its CEO, Tom Folliard, a pay package valued at $6.1 million for fiscal 2012, about 5 percent more than the previous year, according to an Associated Press analysis of a regulatory filing.
The pay package came in a year when the Richmond, Va.-based company saw its net income rise 10 percent to $413.8 million and its revenue grow 11 percent to a record $10 billion. Sales at stores open at least one year grew 1 percent during the fiscal year after increasing 10 percent a year earlier.
The compensation package was disclosed in an annual proxy statement filed with the Securities and Exchange Commission on Thursday.
Folliard's salary rose 4 percent to $1.04 million, the value of his stock options and stock awards grew 27 percent to $3.86 million, and he received an $898,560 performance-based bonus.
The leader of CarMax since 2006, Folliard also received other compensation worth $319,390, including the personal use of the company plane, valued at $125,000, and a personal car allowance valued at $10,296.
His pay package was worth $5.8 million the previous year.
CarMax, which operates more than 105 stores that mainly sell used cars and trucks in 54 markets, also announced it will hold its annual meeting June 25 in Richmond, where shareholders will elect four members to its board.
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 2011 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.
Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum.