The chairman and chief executive of natural-gas and oil producer Chesapeake Energy Corp. received compensation valued at about $25.5 million in fiscal 2007, 5 percent more than in the previous year, according to a regulatory filing Tuesday.
The Oklahoma City-based company awarded Aubrey K. McClendon $975,000 in base salary and a bonus of $1.8 million.
McClendon, who co-founded the company in 1989, also received stock and option awards valued at $21.4 million on the days they were granted.
Additionally, Chesapeake granted McClendon about $1.3 million in all other compensation, which included personal use of company aircraft, accounting support, matching contributions to retirement plans, supplemental life insurance premiums, country club dues and financial advisory services.
McClendon's total pay package in 2006 was valued at $24.2 million, when he received stock and option awards valued at $19.9 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 that companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.
According to the company's proxy filing, McClendon's compensation is awarded predominantly in the form of long-term equity incentives. McClendon owns about 29.5 million shares of the company's common stock. At McClendon's request, the compensation committee has maintained his base salary at $975,000 since 2006, the filing said.
In 2007, Chesapeake's income fell to $1.45 billion, or $2.62 per share, from $2 billion, or $4.35 per share, in 2006. Revenue increased to $7.8 billion from $7.33 billion.
Shares rose 35 percent in 2007 to close at $39.20. Shares fell $2.16, or 4 percent, to $51.64 in afternoon trading Tuesday.
Terms & Conditions
RSS Headlines
Fool UK