CEO Paywatch: Total pay for 3M's Roman fell 3% in 2020
March 25, 2021 at 4:23PM
3M Co.
Chairman and chief executive
Total compensation: $6,825,832 for the year ended Dec. 31
Salary: $1,299,948
Non-equity incentive pay: $1,582,901
Other compensation: $106,513
Exercised stock options: $1,336,651
Value realized on vesting shares: $2,499,819
New stock options: 231,768
CEO pay ratio: 308 to 1
Median employee pay: $67,109
Total 2020 shareholder return: 2.8%
Note: Roman's realized compensation of $6.8 million fell 3% from 2019. While the pandemic did affect 3M's financial performance throughout the year, the compensation committee of its board of directors elected not to adjust financial incentive targets that were previously set. The committee also made no changes to compensation design for 2021.
A note in the company's proxy stated, "Although the Compensation Committee believes that the pandemic had a significant, adverse impact on the ability of executives to meet certain performance goals, the Committee determined not to adjust the targets or payouts for any of the Named Executive Officers. Similarly, the Committee determined not to make any design changes to the Company's 2021 executive compensation program based on the pandemic. The Committee believes this approach is consistent with the Company's pay-for-performance philosophy."
The annual incentive targets at 3M are based on business goals, including on sales and profits and individual performance. For Roman, business goals performance came in at 71% of target. He and other executives also earned bonuses for achieving individual performance goals, which include a mix of quantitative and qualitative measures.
Patrick Kennedy
Target sponsored the event for 18 years, but the organization cut ties after the retailer scaled back its DEI efforts.
