Chemical CEOs may get more pay in 2010, 2011 - US analyst

01 November 2010 17:47  [Source: ICIS news]

HOUSTON (ICIS)--Pay packages will likely increase in 2010 and 2011 for the chief executives of chemical companies, reversing a recent trend of shrinking compensation, an analyst with a US-based investment firm said on Monday.

The increases in 2010 and 2011 will likely reflect the recovery in the end markets for chemical companies, said Laurence Alexander, an analyst with Jefferies.

Before, CEO pay packages for the Jefferies chemical companies fell by 4.1% in 2008-09, Alexander said.

In general, the chemical companies followed by Jefferies base their pay packages on such measurements as earnings per share, revenue and earnings before interest, tax, depreciation and amortisation (EBITDA), Alexander said. The least common measurements include debt reduction, stewardship and market share.

When compared with other companies, chemical companies rely more on stock incentives instead of cash, Alexander said. Moreover, compensation is tied more with the market capitalisation of the company versus its margins.

The following is a list of CEO pay packages:

source: Jefferies

3M	George Buckley	$14,935,793
Air Products	John McGlade	$10,946,246
Airgas	Peter McCausland	$3,364,953
Albemarle	Mark Rohr	6,223,689
Ashland	James O'Brien	$5,147,623
Cabot	Patrick Prevost	$2,202,696
Cytec Industries	Shane Fleming	$2,810,351
Donaldson Co	William Cook	$1,519,787
DuPont	Ellen Kullman	$10,028,535
Ecolab	Douglas Baker	$8,774,567
Energy Recovery	Gonzalo Pique	$2,093,200
Green Plains Renewable Energy	Todd Becker	$2,218,099
Huntsman	Peter Huntsman	$10,374,648
Koppers Holdings	Walter Turner	$2,193,107
Lubrizol	James Hambrick	$7,973,810
LyondellBasell	James Gallogly	$5,274,939
Metabolix	Richard Eno	$1,034,227
Monsanto	Hugh Grant	$9,133,836
Nalco	Erik Fyrwald	$5,620,847
Omnova Solutions	Kevin McMullen	$3,017,506
Penford	Tom Malkoski	$1,338,472
Praxair	Stephen Angel	$10,184,304
Solutia	Jeffry Quinn	$5,711,006
USEC	John Welch	$6,139,929
Verenium	Carlos Riva	$2,069,403
WR Grace	Alfred Festa	$5,620,988

 

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By: Al Greenwood
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