John V. Faraci, chief executive of International Paper Co., received compensation last year valued at $10.3 million, 4 percent less that the previous year, according to an Associated Press calculation of figures disclosed Monday in a regulatory filing.
Faraci, 59, received a salary of about $1.3 million, roughly the same as he received in 2007. The Memphis, Tenn., company also gave him a performance-based cash bonus of $1.6 million, down 20 percent from the previous year's $2 million.
The CEO, who has led the forest products company since November 2003, received perks valued by the company at $352,162, about 10 percent less than the previous year's amount. Included in his 2008 perks was $258,524 for both car allowance and personal use of corporate aircraft.
Faraci also received stock awards valued at $7.1 million, about the same as he received in 2007.
The Associated Press calculates that Faraci received compensation in 2007 valued at $10.7 million.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related 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 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 Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.
Last year was a difficult one for the company. Its stock fell 64 percent. That contrasts with the S&P 500 index that lost 39 percent last year.
International Paper's net income plunged to $57 million, or 13 cents per share, compared with earnings of $1.17 billion, or $2.70 per share, in 2007. Excluding charges, 2008 earnings came to $2.01 per share. Annual sales rose 13 percent to $24.83 billion.
Much of the decline came at the end of the year, Faraci said.
"International Paper had a solid year overall despite a weak fourth quarter," he said. "Free cash flow for the year was an all-time record and continued to be strong in the fourth quarter despite a severe contraction of global demand, particularly in North America.
