New Caterpillar CEO’s compensation quadruples
New Caterpillar CEO's compensation quadruples
Caterpillar quadrupled Doug Oberhelman's compensation last year when he was promoted to the company's top job, but his $ 10.4 million compensation was less than half what the retiring chief executive received, according to an Associated Press review of a regulatory filing April 15.
April 16, 2011 – Caterpillar quadrupled Doug Oberhelman's compensation last year
when he was promoted to the top job at the world's largest maker of
mining and construction equipment, but his $10.4 million compensation
was less than half what the retiring chief executive received, according
to an Associated Press review of a regulatory filing Friday. All figures are in U.S. dollars.
became CEO last summer and added the chairman title in the fall after
Jim Owens retired. Owens' compensation more than tripled in 2010 to
$22.5 million, mostly because Caterpillar's board gave him a stock grant
worth $16 million to thank him for his leadership.
board said in documents filed with the Securities and Exchange
Commission that the compensation both men received was warranted because
of the company's performance and because Oberhelman took on much more
In the middle of its leadership transition,
Caterpillar delivered strong results in 2010. The economy began to
emerge from the depths of recession and strong demand for Caterpillar
equipment continued in developing nations.
$2.7 billion in net income, or $4.15 per share, on revenue of $42.6
billion last year. That was up from the $895 million in net income, or
$1.43 per share, Caterpillar reported in 2009 on revenue of $32.4
Caterpillar also announced acquisitions last year of
mining equipment maker Bucyrus International, locomotive maker
Electro-Motive Diesel, Inc. and German engine maker Motoren-Werke
The Peoria, Ill., based company predicts profit will
continue to grow in 2011 to nearly $6 per share on more than $50 billion
The AP formula calculates an executive's total
compensation during the last fiscal year by adding salary, bonuses,
perks, above-market interest the company pays on deferred compensation
and the estimated value of stock and stock options awarded during the
year. The AP formula does not count changes in the present value of
pension benefits. That makes the AP total slightly different in most
cases from the total reported by companies to the Securities and
Caterpillar said Oberhelman received stock
options worth $6.1 million and stock grants worth $494,608 last year as
part of its long-term incentive plan.
Owens didn't receive any
stock options, but he did receive the $16 million stock grant. He served
as the company's top executive from 2004 to 2010, and worked for
Caterpillar for more than 38 years.
As part of his retirement
Owens receives an administrative assistant and computer tech support for
five years. Those perks worth $317,358 were part of $548,821 in perks
that Owens received last year.
Oberhelman's received $63,725 in perks. Most of that was from $45,000 worth of personal use of Caterpillar's corporate jets.