Kellogg CEO Earns Less

By: Associated Press
By: Associated Press

Kellogg Co. Chief Executive David Mackay took home about 4 percent less in fiscal 2008 than he did the year before, receiving compensation of about $10 million.

According to a Securities and Exchange Commission proxy statement filed Friday, Mackay received a base salary of about $1.1 million and a performance-based bonus of $2.6 million. Those numbers were comparable to those in his 2007 take-home package, which totaled $10.5 million.

He also received perquisites, or "perks", in 2008 of $1.4 million. The perks included $132,483 in company contributions to savings and retirement plans, $373,538 in life insurance, $6,000 for financial planning services and $863,192 as a payment for the elimination of a stock option award program.

The perks were far higher than in 2007, mainly due to the payment for elimination of the award program. But he received less last year in stock options and restricted stock.

In 2008, Mackay took home stock and stock options worth $4.9 million when granted in fiscal 2008. The year before, he received stock and stock options worth nearly $7 million.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, 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 SEC.

In fiscal 2008, the company's profit rose about 5 percent, helped by a boost in revenue. The company benefited from more consumers eating at home to save cash. The company's share price, though, dropped 16 percent as the overall market fell during the year as the recession deepened.

Battle Creek, Mich.-based Kellogg, which makes Pop-Tarts toaster pastries, Eggo frozen waffles, Cheez-It crackers and other brands, plans to hold its annual shareholder meeting on April 24.

Shares slipped 2 cents to $36.70 in Friday afternoon trading.

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  • by ? Location: Pennsylvania on Apr 11, 2009 at 09:20 AM
    Isn't it funny how the ones that actually keep the plants running and producing product are the ones loosing their jobs while the people that couldn't propbably start up a Salwasser are getting richer and richer
  • by James Location: Raleigh on Mar 25, 2009 at 04:54 PM
    I work for Kellogg's and he won't even give his employee's more than a $.40 raise over three years so for him to take home that much is criminal.
  • by tammie Location: jackson michigan on Mar 7, 2009 at 12:07 PM
    How many americans earn much less than that,Try living on mim wages,doing manual labor.Count your blessing rich one.Your bed of roses may get very bummy in the end of things.Your still making more than you should be.The economy storm isn't over with yet.
  • by Anonymous on Mar 7, 2009 at 07:28 AM
    No one needs that much money.This could be the reason companies are in the mess they are.Pay like this keeps prices up.It is time big money gets off there high horses and stop thinking they are so great.How much loss do many have to take before they wake up.Some big wigs need to figure out where they went wrong and start considering others in all this mess.Can't run your bussiness right?Then go out of bussiness.People are without jobs,more loosing jobs.Moving companies out of the states.Just traders to the USA and the people.Without a good economy,people will not buy brand names.More companies will go under.Greedy ones must learn their lessons to.People who went to far in debt for overly priced homes may be seeing things differnt.Big profits paid to much to some and they wonder what's happened to their bussiness.Ther's a lot of smart ones comming out of college.They'd be happy with 100,000$ a yr.hire them.Save your companies money and lower prices or go under.
  • by JB Location: Jackson on Mar 6, 2009 at 03:29 PM
    That is to much money he does not need that much 1 million is more that enough for that job. Use the other 9 million to put more people to work then the unemployment rate can go down some in Michigan.
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