Last year, 3M had a leadership transition in May, resulting in both CEO Bill Brown and retired chief Mike Roman earning more than $7 million.
Before Roman retired, he saw through the spinoff of 3M’s health unit Solventum and made the hard decision to cut its dividend, losing its prized dividend aristocrat status.
Brown came to 3M from L3Harris Technologies, where he was chair and CEO. He joined as CEO May 1, but did not become chair of the board until earlier this month.
Here’s how Brown’s pay broke down, with the majority coming from signing bonuses and equity awards.
- Total compensation for the year ended Dec. 31: $7,523,738
- Salary: $1,200,000
- Bonus: $3,000,000
- Non-equity incentive pay: $2,711,725
- Other compensation: $612,013
- New stock options: 211,096
- CEO pay ratio: 369 to 1
- Median employee pay: $74,417
- Total 2024 shareholder return: 46.1%
Brown was awarded when he signed $13.6 million worth of various equity awards that will vest and be realized across several years. He also received $68,814 to pay taxes he owed on his bonus to relocate to Minnesota and $10,000 worth of financial planning services.
Roman had served as CEO of 3M Co. since July 2018. While he stepped down as chief executive in May, he did not retire as executive chair until earlier this month. He remains an executive adviser through May 1.
Here’s how his pay broke down.
- Total compensation for the year ended Dec. 31: $7,397,969
- Salary: $1,165,399
- Non-equity incentive pay: $2,622,780
- Other compensation: $154,693
- Value realized on vesting shares: $3,455,097
- New stock options: 316,644
- CEO pay ratio: 369 to 1
- Median employee pay: $74,417
- Total 2024 shareholder return: 46.1%
For 2024 Roman realized $7.4 million in total compensation including $3.5 million from restricted shares that vested during the year and $2.6 million for annual incentive pay for the year as the company exceeded targeted goals for sales, operating income and cash flow.
