No ”Option Play” for Some CFO Pay

Finance chiefs at Textron, Avery Dennison, MetLife, UST, and Pitney-Bowes take home tidy pay packages with scant reliance on options.

Exercising stock options is a big factor behind many big paydays for finance executives, but lately some have gone without and still done very well for themselves.

For example, Ted French, executive vice president and chief financial officer of conglomerate Textron Inc., earned more than $4.4 million in 2005 from a variety of sources, but none of it from exercising options.

His largest source of income was more than $2.1 million in long-term incentive plan (LTIP) payouts. In addition, he received a salary of $700,000, a bonus of $910,000, restricted stock valued at about $532,000, and nearly $133,000 in “other annual compensation.” This last category included $107,000 for his personal use of company aircraft.

At Avery Dennison Corp., executive vice president and chief financial officer Daniel O’Bryant earned $4.3 million in 2005 without exercising options. He received restricted stock valued at more than $1.7 million, LTIPs worth $537,000, and salary and bonus of a little more than $500,000 each.

Another big source of income for O’Bryant: more than $1 million of “all other compensation.” In a footnote to the proxy, the only significant chunk of money that Avery Dennison identified was $34,749, which O’Bryant received in dividends on his restricted stock in the form of additional restricted stock.

William J. Wheeler, executive vice president and chief financial officer for MetLife Inc., took home more than $3.3 million last year. This included a salary of $396,000, LTIP payouts valued at $518,000, a bonus of $1.375 million, and nearly $45,000 in “other compensation,” most of it related to the company’s contribution to its auxiliary savings and investment plan.

Robert D’Alessandro, executive vice president and chief financial officer of UST Inc., a holding company for tobacco and wine businesses, took home more than $2 million last year, including a salary of about $441,000, a bonus of nearly $942,000, and restricted stock valued at roughly $490,000. D’Alessandro received about $180,000 from exercising options, too.

At Pitney-Bowes Inc., executive vice president and chief financial officer Bruce Nolop earned about $1.8 million last year. That included a $546,000 salary, a $577,000 bonus, and $702,000 in LTIP payouts.

Discuss

Your email address will not be published. Required fields are marked *