The CEO of real estate investment trust Plum Creek Timber Co. received 2008 compensation valued at $4.3 million, a 21 percent increase from his 2007 pay package, according to Associated Press calculations of figures disclosed in a regulatory filing. But much of it came in stock options that have declined in value.
Rick R. Holley, 57, who also holds the title of president, received $830,000 in base salary, according to a proxy statement filed Wednesday with the Securities and Exchange Commission.
Holley didn’t receive a cash bonus, but earned a performance-related bonus of $963,630 because the company’s funds from operations, of FFO, exceeded a target set by the board of directors.
More than half of Holley’s compensation was in the form of stock and stock options, which the company valued at about $2.4 million when granted. However, $968,800 of that stemmed from stock options that vest through 2012 and were granted to Holley in February 2008 when the stock traded at $42.98. The company’s shares closed Thursday at $26.86, making the options of little value absent a substantial rebound in stock price.
Holley also received $69,681 worth of perks, including $25,598 for a company-leased car and $13,800 in matching contributions to a profit-sharing plan.
The Associated Press’ compensation 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 Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive’s compensation in the previous fiscal year.
Seattle-based Plum Creek is one of the nation’s largest timber companies.
For 2008, Plum Creek posted net income of $233 million, or $1.37 a share, down slightly from 2007 profit of $282 million, or $1.61 a share. Total revenue in 2008 was $1.61 billion, down 3.6 percent from $1.67 billion in the prior year.
Plum’s shares declined nearly 23 percent over the course of 2008.
The company will hold its annual meeting of shareholders May 6 in Seattle.