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CHICAGO — The Black & Decker Corp.'s longtime chief executive saw his 2008 compensation dip by nearly 4 percent in 2008, as the toolmaker's full-year profit dropped by nearly half, according to a regulatory disclosure Monday.
Nolan D. Archibald took home a total compensation package valued at nearly $12.1 million, according to an analysis by The Associated Press. That compares with total compensation of $12.5 million in 2007.
Archibald, who is also the Towson, Md.-based company's president and chairman, saw his base salary hold steady at $1.5 million, while his performance-based cash bonus grew 39 percent to nearly $1.9 million, up from about $1.4 million in 2007.
The 65-year-old, who took the helm of the company in 1986, didn't receive a bonus in 2008, which amounted to $400,000 the year before. He also took home stock and option awards valued at $8 million when they were awarded, about 7 percent less than in the year before. However, much of those awards came with an exercise prices of $68.04, which is nearly triple the stock's current price. That means the awards are currently of little value absent a substantial rebound in stock price.
Archibald's other compensation amounted to $647,881. That included perks like personal use of the company's aircraft, valued at $328,415, and personal use of a company car at a cost of $78,929. Other benefits included $90,600 in supplemental retirement savings and $69,097 in tax reimbursement payments.
The Associated Press 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 executive's compensation in the previous fiscal year.
In 2008, Black & Decker earned $293.6 million, or $4.82 per share. That's about 43 percent less than its 2007 profit of $518.1 million, or $7.85 per share. Adjusted earnings totaled $5.47 per share in the latest year.
Annual sales dropped to $6.09 billion, down 7 percent from $6.56 billion in the previous year.
The company's shares opened 2008 at $69.46 but tumbled amid the market meltdown to end the year at $41.81, down 40 percent. Shares have continued to plunge in the first months of 2009, ending Monday trading up 11 cents at $24.12.
Last week, Black & Decker said it was cutting the base salaries of top executives and ending contributions to retirement programs because "unprecedented challenges of the global economy" have cut into its revenue.
The power tool maker said it's also cutting base salaries for other workers by 2.5 percent to 5 percent. The changes are to take effect in April.
