compensation of ceo mimics earnings decline [Virginian - Pilot]
(Virginian - Pilot Via Acquire Media NewsEdge) By Philip Walzer
The total pay for Smithfield Foods' CEO dropped 35 percent in the company's last fiscal year, reflecting declining earnings. But C. Larry Pope still came away with $10.8 million, according to its annual report, released Friday.
Pope's compensation totaled $16.5 million in 2012 and $20.2 million in 2011.
"The CEO's total direct compensation moves up and down in proportion to the company's profitability," the report said. Smithfield reported in June that its profit for fiscal 2013, which ended April 28, totaled $184 million - just over half of its $361 million profit of 2012. Smithfield's results were driven down by a $119 million loss in its hog-farm business.
Other top executives listed in the report also received less in the past year. Second highest was Robert W. "Bo" Manly IV, an executive vice president and chief financial officer. His total compensation dropped to $8.7 million from $11.4 million in 2012, the report said.
Smithfield announced in a proxy earlier this week that shareholders would meet in Richmond on Sept. 24 to vote on the proposed $7.1 billion takeover of the company by Chinese meatpacker Shuanghui International Holdings Ltd.
Under the deal, stockholders would receive $34 for each share. Smithfield's shares closed Friday at $33.53 each on the New York Stock Exchange, up 2 cents from Thursday.
The report reiterated that Pope would receive an $8.3 million "retention bonus" if he stayed at Smithfield for at least three years after Shuan-ghui's purchase, which must be approved by federal regulators.
Philip Walzer, 757-222-3864,email@example.com
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