An Eli Lilly spokesman said Mr. Ricks’s equity award values reported by the company reflect projections of probable outcomes of performance conditions.
Huggies maker Kimberly-Clark Corp. reported compensation actually paid of $23.4 million for CEO Michael Hsu and total compensation, the old measure, of $14.6 million.
Much of the difference lay in new stock and option awards Mr. Hsu received last year, which also increased in value by year’s end.
Kimberly-Clark said $100 invested in the company would have returned about $109 after three years, compared with about $131 for funds invested in a group of similar companies, and reported net income of $1.9 billion, up about 6.6% from 2021.
The new measure of pay “fluctuates due to stock price and levels of projected and actual achievement of performance goals,” a Kimberly-Clark spokesman said.
For Schlumberger’s Mr. Le Peuch, the difference largely came down to growth in the value of stock he had received in prior years, which rose in value by $15.4 million during the year. New equity awards, valued at $12 million when made in January 2022, rose in value by about $8.1 million during the year.
The prior equity awards include grants made in 2019 when Mr. Le Peuch became the oil-services firm’s CEO, a spokesman said. The rise in his equity pay’s value during 2022 reflects both market movement, as Schlumberger’s share price rose by more than 70% during the year, and adjustments as a result of meeting performance targets, the spokesman added.
Share price and the new compensation measure don’t always move in tandem. Owens Corning, which makes insulation and roofing materials, reported total compensation of $11 million for CEO Brian Chambers, including $4.35 million in cash and restricted-stock awards valued at $6.4 million in February last year. His compensation actually paid was $14.1 million, according to the latest proxy statement from the company.
Mr. Chambers’s 2022 stock awards rose to a valuation of $7.2 million by year’s end, while stock awards he received in prior years also rose in value, by about $2.4 million. Owens Corning’s share price fell during the year, and the company reported a total shareholder return for 2022 of roughly minus 5.5%.
Mr. Chambers’s equity awards increased in value while the stock fell because the company met or exceeded performance targets, including by recording total shareholder return that beat the broader market and a group of peer companies, an Owens Corning spokesman said. Incentives for meeting or beating those targets “more than offset the decrease in value driven by the decline in stock price,” he said.
The equity component of Mr. Chambers’s actual-pay figure includes the company’s estimate of year-end values, not a measure of realized market gains, the spokesman added, and 60% of the 2022 awards are tied to company performance measures.
Fastenal said equity awards declined in value overall for its CEO, Mr. Florness, by $1.5 million, mostly because of a decline in value from unvested equity awards from past years. New option awards made during 2022 declined in value to about $334,000 by year’s end, from about $617,800 when made in early January 2022.
