Earnings

Return to Article

Allegheny Tech. CEO's Pay Falls By Half In 2008

The Associated Press

NEW YORK (AP) — The chairman, president and chief executive of titanium producer Allegheny Technologies Inc. received compensation valued at $11.5 million in 2008, down 54 percent from the $25.2 million he was awarded a year earlier, according to an Associated Press analysis of a Securities and Exchange Commission filing Monday.

L. Patrick Hassey received a 2008 base salary of $907,917, compared with a 2007 base salary of $880,042.

Hassey didn't receive a bonus in 2008. In 2007, he was awarded a bonus of $323,886. His performance-based cash bonus fell to $5.5 million in 2008 from nearly $18 million in 2007.

Hassey also received perks valued at $722,645 in 2008, up from $567,172 in 2007. His perks included a club membership, parking, insurance premiums and travel between his family's home in Salt Lake City and the company's headquarters in Pittsburgh. When Hassey was recruited in 2003, the company agreed to pay for him to travel home occasionally on a leased aircraft to avoid Hassey having to move his family to Pennsylvania.

In 2008, Hassey received shares and restricted stock valued at about $4.4 million when they were granted. He received $5.5 million in similar awards in 2007.

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.

In 2008, Allegheny's profit fell to $565.9 million, or $5.67 per share, from the $747.1 million, or $7.26 per share, recorded the previous year. Revenue slipped to $5.31 billion from $5.45 billion.

The company's stock price fell 70 percent in 2008.