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Wed, April 15, 2009 Ensco CEO gets $7.7M in total pay, an 8 pct jump
Ensco CEO gets $7.7M in total pay, an 8 pct jump - Yahoo! Finance
Daniel Rabun, the company's chairman, president and CEO, saw his total compensation climb to $7.7 million in 2008. He earned $7.1 million in 2007.
Rabun's salary jumped 8 percent to $851,813, compared with the $787,500 he earned in 2007. Rabun received a performance-based bonus of $1.2 million, a 4 percent bump from the $1.1 million he earned the year before. Ensco also gave him about $148,196 in "other" compensation, which includes about $85,182 toward his profit sharing plan, $31,091 for his retirement savings plan and $15,041 in dividends on non-vested restricted stock.
On June 1, 2008, the company granted Rabun restricted stock valued at $5.5 million when shares were trading at $71.83. Ensco's stock has fallen 56 percent since then, so the awards are worth much less today.
Of the five company officials listed in the filing, Rabun, 54 and CEO since January 2007, was by far the highest paid executive.
Ensco said its compensation program aims to competitively attract talent in the sector by referencing the median of a peer group of oilfield service companies of a similar size, such as BJ Services Co., Cameron International Corp. and Noble Corp. to name a few, and historical financial performance. Cash bonuses, aimed to reward achieved goals, are based on predetermined targets, and in recent years have fallen below the median of peer group companies. The company provides stock awards to align executives with its long-term goals. Due to the global economic downturn, the company's compensation committee said there will be no increases in executive base salaries in 2009.
In 2008, Ensco's profit rose to $1.15 billion, or $8.11 per share, compared with $992 million, or $6.73 per share, a year earlier. Revenue rose 17 percent to $2.45 billion from $2.09 billion in 2007.
Like other drilling companies, as commodity prices tumbled in the second half of 2008 and demand for energy products sank, the sector took a beating and stocks sharply fell. For the full year, Ensco shares plunged more than 50 percent to close the year at $28.39.
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.
