Randall Hogan, chairman, CEO Total compensation: $5,919,769 for the year ended Dec. 31
Salary: $936,693
Non-equity incentive pay: $1,264,536
Other compensation: $186,633
Exercised stock options: $1,912,608
Value realized on vesting shares: $1,619,299
New stock options: 309,288
Total return to shareholders: 40.1 percent
Note: Pentair announced 1,600 layoffs in December 2008 as orders dropped significantly for the global provider of water and thermal management products. Pentair finished 2009 with sales down 20 percent and earnings per share of $1.17. The company had expected an 8 to 10 percent sales decrease back in December 2008 and issued guidance on earnings in the $1.70 to $2 per share range. It is more optimistic for 2010 and hopes to benefit from improving markets.
Hogan's total compensation for 2009 of $5.9 million was almost $1 million more than the previous year. While his base salary went down, his bonus was up and he gained more from the exercise of stock options than in 2008.
In December 2008 the compensation committee determined it would freeze executive salaries for 2009, and in May 2009 Hogan agreed to reduce his base salary 10 percent for the balance of the year. Hogan's bonus for 2009 was $1.3 million, up from $525,155 in 2008. Despite the 20 percent sales decline, the company met or exceeded two of its three performance targets.
For 2010, the compensation committee decided to restore merit-pay salary increases for executives and in April will restore Hogan's salary to its prior level.
PATRICK KENNEDY
Following a decade of spending on technology, new CEO seeks return to its legacy of efficiency.
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