At Aurora, Ontario-based Magna International Inc., founder and controlling shareholder Frank Stronach, along with Stronach Trust, gave up voting control in 2010.
Magna officials take the top four places in the Plastics News ranking chart in total compensation. No. 1 is Stronach; his daughter, Belinda, is at No.2.
When Magna is removed from the ranking, Newell Rubbermaid Inc. CEO and President Mark Ketchum, now at No. 5, moves to No. 1, with 2010 compensation of $9.33 million. That included stock awards of $3.4 million, a salary of $1.3 million, an NEIP payout of $2.3 million and option awards of $1.67 million. Ketchum retired in July and was replaced as CEO and president by Michael Polk.
The Atlanta firm highlighted compensation changes for 2010 in its proxy statement filed April 1. It cited a stabilization of general economic conditions as the reason for changes that included establishing “stretch goals” for its management cash bonus plan and boosting the percentage of the plan's payout, based on sales, from 15 percent to 35 percent.
Griffon Corp.'s Ronald Kramer occupies the next position in the top 10 minus Magna, with total compensation of $8 million. Griffon paid Kramer $5 million in NEIP during 2010. He has the highest NEIP payout for 2010 (again, sans Magna). Kramer's base salary was $800,000 for 2010, a year in which he declined a salary increase, according to Griffon's proxy.
Focused on growth by acquisition, Griffon's compensation committee determined at year-end 2010 that Kramer was eligible for a bonus of $3 million because of EBITDA generated by Griffon operations, a bonus of $3 million for its working capital position at the end of 2010, and a bonus of $2 million because it completed its acquisition of Ames True Temper. But because of a performance bonus plan Griffon put in place in 2006, Kramer could not be paid more than $5 million.
Tupperware Brands Corp. CEO Rick Goings had a total package of $7.8 million, including $2.7 million in NEIP payouts. Tupperware disclosed in its proxy that it hired a firm in 2010 to evaluate executive compensation trends; review compensation regulations and relevant accounting pronouncements; and review management's recommendations regarding compensation and plan design.
Total compensation packages for Tupperware's CEO and chief operating officer are targeted to approximate the 75th and 60th percentile of the market, respectively.