The outgoing chairman and chief executive of oil drilling contractor Rowan Cos. received a pay package valued at $4.6 million in 2008, 1.4 percent more than he made a year earlier, according to an analysis of the former CEO's compensation by The Associated Press. He also received a generous retirement package.
Danny McNease, who retired Dec. 31 after 34 years with the Houston-based company, received a base salary of $775,000, up from $725,000 a year ago, according to Rowan's proxy filing Monday with the Securities and Exchange Commission. His bonus in 2008 was $214,114, down 75 percent from the previous year.
McNease also received $150,136 under the company's profit-sharing plan, an increase from the $138,750 he got in 2007.
The bulk of McNease's pay package came in the form of stock compensation that Rowan valued at about $3.4 million when the grants were made April 11, 2008.
Additionally, McNease received perks valued at $19,754. That figure included $8,050 in contributions to a company savings plan, $6,103 for use of a company vehicle and $5,601 for a club membership.
In 2007, McNease received total compensation valued at $4.5 million, including a stock award of $2.7 million.
The AP formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC, which reflect the size of the accounting charge taken for the executives compensation in the previous fiscal year.
Rowan rewarded McNease generously for his three-plus decades with the company, which provides contract drilling services to the oil and gas industry.
Upon retirement in January 2009, McNease has a consulting agreement with the company that will pay him $50,000 a month for two years, according to the proxy. Also in January, as part of a severance package, he was to receive an initial cash payment of $80,000, followed by 23 monthly cash payments of $50,000, the proxy says.
After those 23 severance payments, the company agreed to pay McNease $100,000 a month for another year.
In turn, McNease agreed not to compete with Rowan or any of its subsidiaries for two years.
In December, Rowan announced that its board of directors had appointed W. Matt Ralls as its new president and chief executive. Ralls, 59, had most recently served as chief operating officer of GlobalSantaFe Corp., an international contract drilling company.
Jack Lentz, 64, former managing director of Barclays Capital, took over as chairman of the board Jan. 1. Lentz has served on Rowan's board since 1990.
In its proxy, Rowan also noted that to retain two top executives during its search to replace McNease, its compensation committee approved stock awards valued at $500,000 each for David P. Russell, executive vice president for drilling operations, and Mark A. Keller, executive vice president for business development.
In 2008, Rowan Cos. profit slipped 12 percent to $427.6 million, or $3.77 per share, compared with $483.8 million, or $4.31 per share, in 2007. Excluding one-time items, adjusted earnings for 2008 amounted to $460.7 million, or $4.06 per share. Revenue climbed 6 percent to $2.21 billion from $2.1 billion.
source: yahoo
Danny McNease, who retired Dec. 31 after 34 years with the Houston-based company, received a base salary of $775,000, up from $725,000 a year ago, according to Rowan's proxy filing Monday with the Securities and Exchange Commission. His bonus in 2008 was $214,114, down 75 percent from the previous year.
McNease also received $150,136 under the company's profit-sharing plan, an increase from the $138,750 he got in 2007.
The bulk of McNease's pay package came in the form of stock compensation that Rowan valued at about $3.4 million when the grants were made April 11, 2008.
Additionally, McNease received perks valued at $19,754. That figure included $8,050 in contributions to a company savings plan, $6,103 for use of a company vehicle and $5,601 for a club membership.
In 2007, McNease received total compensation valued at $4.5 million, including a stock award of $2.7 million.
The AP formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC, which reflect the size of the accounting charge taken for the executives compensation in the previous fiscal year.
Rowan rewarded McNease generously for his three-plus decades with the company, which provides contract drilling services to the oil and gas industry.
Upon retirement in January 2009, McNease has a consulting agreement with the company that will pay him $50,000 a month for two years, according to the proxy. Also in January, as part of a severance package, he was to receive an initial cash payment of $80,000, followed by 23 monthly cash payments of $50,000, the proxy says.
After those 23 severance payments, the company agreed to pay McNease $100,000 a month for another year.
In turn, McNease agreed not to compete with Rowan or any of its subsidiaries for two years.
In December, Rowan announced that its board of directors had appointed W. Matt Ralls as its new president and chief executive. Ralls, 59, had most recently served as chief operating officer of GlobalSantaFe Corp., an international contract drilling company.
Jack Lentz, 64, former managing director of Barclays Capital, took over as chairman of the board Jan. 1. Lentz has served on Rowan's board since 1990.
In its proxy, Rowan also noted that to retain two top executives during its search to replace McNease, its compensation committee approved stock awards valued at $500,000 each for David P. Russell, executive vice president for drilling operations, and Mark A. Keller, executive vice president for business development.
In 2008, Rowan Cos. profit slipped 12 percent to $427.6 million, or $3.77 per share, compared with $483.8 million, or $4.31 per share, in 2007. Excluding one-time items, adjusted earnings for 2008 amounted to $460.7 million, or $4.06 per share. Revenue climbed 6 percent to $2.21 billion from $2.1 billion.
source: yahoo
0 comments:
Post a Comment