The company did not adjust financial targets for bonuses last year, which were set before the coronavirus hit the U.S.
Chairman, president, CEO
Total compensation: $3,544,459 for the year ended Oct. 31, 2020
Salary: $871,250
Nonequity incentive pay: $307,094
Other compensation: $95,349
Value realized on vesting shares: $1,524,966
Options exercised: $745,800
New stock options: 152,900
Median employee pay: $40,791
CEO pay ratio: 147-1
Total fiscal 2020 shareholder return: 7.9%
Note: Olson received $4.8 million in total compensation in the 2019 fiscal year.
Toro instituted reductions during the year to offset the impact of COVID-19. Among the actions: salary reductions for employees and a freeze on merit-pay increases. Office employees also received 3.5% salary reductions starting in May, while executives took larger percentage cuts and Olson the steepest salary reduction at 30%. The salary reductions have subsequently been reinstated.
Toro did not adjust its performance goals for fiscal 2020, which were set before the onset of the pandemic. As a result, Olson's performance bonus for the year was nearly half the previous year and his total realized compensation decreased 26% from the previous year.
The company reported revenue of $3.38 billion, a 7.7% increase over the previous year, and earnings per share of $3.03, a 19.8% increase from the prior year. Despite those financial gains, in the face of the pandemic it fell short of the thresholds for both the revenue and working capital financial targets. However, the company did meet its EPS goal, so executives earned partial bonuses of about 30% of the targeted amounts.
Toro did not adjust targets for its long-term incentive plan to reflect the impact of COVID-19 either. Corporate performance was strong enough through the first two years to earn executives 69% of the target for the 2018-2020 performance period.
Patrick Kennedy
The longtime company executive has held a private pilot license since 2008. Authorities continued to investigate the crash Tuesday.
