(The Associated Press circulated the following story by David Twiddy on March 27.)
KANSAS CITY, Mo. — The chairman and chief executive officer of Kansas City Southern received compensation valued at $5.2 million, a 63 percent increase over 2006, according to a regulatory filing released Wednesday.
The higher payday for Michael Haverty comes as the railroad operator saw an increase in annual revenues and profits despite the economic slowdown cutting into the amount of goods traveling by rail.
Haverty, 63, was paid $727,794 in salary, $679,302 in nonstock incentive bonuses and $50,494 in other payments, including $29,983 in charitable gift matching and $7,855 in financial planning services.
Haverty also received stock and options worth $3.7 million on the day they were granted, an increase from $1.6 million in stock and options granted in 2006.
His total 2006 compensation package was valued at $3.2 million, including $700,008 in salary, $892,027 in nonstock bonuses and $43,016 in other payments.
The Associated Press calculations of total pay include executives’ salary, bonuses, 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 value of pension benefits, and they can differ from the totals companies list in the summary compensation table of proxy statements.
Haverty, who has served as CEO since 2000 and chairman since 2001, also became vested in 23,852 shares of company stock valued by the company at $742,628 and exercised options worth $1.1 million during the fiscal year. Those figures were not included in the compensation calculation because they are based on personal finance decisions.
For the year, Kansas City Southern said it earned $134 million, or $1.57 per share, compared with $89.4 million, or $1.08 per share, in 2006. Revenue rose 5 percent from $1.66 billion to $1.74 billion.
Total carloads for the year declined 2.7 percent.
Kansas City Southern shares, which have traded in a 52-week range of $27.66 to $43.00, were down 91 cents to $40.25 in morning trading Wednesday.