The chairman, president and chief executive of Genuine Parts Co. received compensation valued at $3.6 million in fiscal 2007, a 6 percent increase from the previous year, according to a regulatory filing Friday.
The Atlanta-based auto parts distributor awarded Thomas C. Gallagher a base salary of $835,000, a 4 percent raise from 2006, and a cash incentive bonus of $1.3 million.
Gallagher also received stock and option awards valued at $1.3 million on the days they were granted.
Additionally, Genuine Parts awarded Gallagher $163,189 in all other compensation, which included 401(k) matching contributions of $2,700, personal use of company aircraft and club membership dues.
Gallagher's total pay package in 2006 was valued at $3.4 million, according to a calculation by The Associated Press.
The AP's total pay calculations include executives' salary, bonus, incentives, 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.
According to its proxy filing, Genuine Parts believes that both short-term and long-term incentive compensation should be directly aligned with company performance. As a result, the company said it provides "somewhat conservative base salaries and higher-than-average target bonus opportunities, to focus less on fixed pay and more on performance-based opportunities."
Genuine Parts said it analyzes the compensation data of a peer group that includes those companies that make up the Dow Jones Auto Parts and Equipment Index, as well as Applied Industrial Technologies Inc., Kaman Corp. and United Stationers Inc.
For fiscal 2007, net income rose 7 percent to $506.3 million, or $2.98 per share, from $475.4 million, or $2.76 per share, in 2006. Revenue grew 4 percent to $10.84 billion from $10.46 billion the year before.
Shares fell $1.24 to $41.48 in afternoon trading. Shares have fallen about 20 percent from a high of $51.68 in September.
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