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TULSA — The chief executive of natural gas provider Williams Cos. earned 10 percent more in 2008 than the previous year, according to an Associated Press analysis of a filing made with the Securities and Exchange Commission.
Tulsa-based Williams Cos. gave Steven Malcolm a 2008 pay package valued at $8.9 million, compared with $8.1 million in 2007.
The bulk of his compensation came from stock options and restricted stock valued at $5.8 million when they were granted. These awards are worth less today as the value of the company's stock has fallen 60 percent since the grant date. Shares of the company currently trade far below the options' exercise price of $36.50.
Malcolm, 60, received a salary boost of 4 percent to $1.09 million. His performance-related bonus tumbled 16 percent to $2 million, compared with $2.4 million in 2007. Malcolm also received $56,215 in perks, mostly for personal use of the company's aircraft.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the past 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 Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.
Williams Cos. reported 2008 a profit of $1.41 billion, or $2.40 per share, up from $990 million, or $1.63 per share, in 2007. Revenue rose 18 percent to $12.4 billion. Analysts polled by Thomson Reuters expected a profit of $2.14 per share on revenue of $13.3 billion.
Shares of Williams Cos. finished Tuesday's trading at $14.74.
