Its short life as a public company helped AdvancePierre Foods deliver some of the region’s biggest raises to its top executives in 2016.
The food manufacturing company went public last July. But before it could celebrate its first anniversary, Tyson Foods announced it would buy the company for $4.2 billion including debt.
AdvancePierre was public long enough to hand out $15.3 million in restricted stock and option awards, a 12-fold increase over 2015. As a result, four of the Tri-State’s 11 biggest raises went to AdvancePierre bosses, including former CEO John Simons.
RELATED: Search our database of 149 executive pay plans
He took a severance package when the Tyson deal was struck. His $4.5 million in total pay included a negotiated bonus of $1.3 million. But his 82 percent raise wasn’t big enough to crack the top 10.
This is part of WCPO’s annual analysis of executive pay. This year’s searchable database includes details on cash and stock-based compensation totaling $403 million for 149 executives from 28 companies.
#10 Steven Johnston
CEO, Cincinnati Financial Corporation
Raise:
96%
2016 total compensation:
$4,249,903
Total shareholder return:
31.54%
#9 Kirk Reich
President, Chief Operating Officer, AK Steel Holding Corporation
Raise:
124%
2016 total compensation:
$2,705,078
Total shareholder return:
356%
#8 Andrew Foerster
Chief Technology Officer, LSI Industries Inc.
Raise:
134%
2016 total compensation:
$709,419
Total shareholder return:
20.40%
#7 David Taylor
CEO, The Procter & Gamble Company
Raise:
136%
2016 total compensation:
$14,404,653
Total shareholder return:
11.95%
#6 Peter Sachse
Former Chief Growth Officer, Macy's, Inc.
Raise:
139%
2016 total compensation:
$7,907,302
Total shareholder return:
-25.03%
#5 Roger Newport
CEO, AK Steel Holding Corporation
Raise:
183%
2016 total compensation:
$4,173,187
Total shareholder return:
356%
#4 Timothy Lutz
Chief Accounting Officer, Multi-Color Corporation
Raise:
197%
2016 total compensation:
$310,969
Total shareholder return:
-22.80%
#3 George Chappelle
Chief Operating Officer, AdvancePierre Foods Holdings, Inc.
Raise:
229%
2016 total compensation:
$3,434,095
Total shareholder return:
41.80%
#2 James Clough
Chief Commercial Officer, AdvancePierre Foods Holdings, Inc.
Raise:
252%
2016 total compensation:
$3,388,931
Total shareholder return:
41.80%
#1 Michael Sims
Chief Financial Officer, AdvancePierre Foods Holdings, Inc.
Raise:
254%
2016 total compensation:
$3,468,402
Total shareholder return:
41.80%
METHODOLOGY
WCPO obtained compensation data from S&P Global Market Intelligence, which pulled it from annual proxy statements companies filed with the Securities and Exchange Commission. Specifically, compensation data from the "summary compensation table" in each company's proxy document was analyzed. The pay category Changes in Pension Value was excluded from tabulations, because it is an actuarial estimate and does not reflect actual gains and losses. Some executives benefit from above-market interest rates in their pension plans. Those benefits, when disclosed, are counted as cash-based pay.
That data was combined with average worker salary data from the Bureau of Labor Statistics report: May 2016 National Industry Specific Occupational Employment and Wage Estimates.
North American Industry Classification System (NAICS) data was also used to most closely match each company to determine average industry worker salary, although many companies actually compete in multiple categories. NAICS data is the standard used by federal agencies to classify businesses in order to collect, analyze and publish statistics tied to the U.S. economy.
Performance data for each company was supplied by S&P Global Market Intelligence, which pulled total shareholder return estimates over one year and three years for the fiscal year in which that company operates.
