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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