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Windstream CEO Compensation Rises 51 Percent

The Associated Press

LITTLE ROCK, Ark. (AP) — Windstream Corp. Chief Executive Jeffery Gardner received a compensation package valued at $6.4 million in 2008, a 51 percent increase from the prior year, according to an analysis by the Associated Press.

In a year in which the phone and broadband service provider saw earnings drop 55 percent, Gardner earned a base salary of $984,000, an 11 percent increase from 2007. His performance-based bonus payment rose by more than a million dollars to $1.79 million, from $774,474 a year earlier.

Windstream's CEO also received perks worth $21,522, including $11,500 in company matches to his 401(k) retirement plan. The value of the perks were 19 percent more than a year ago.

The company gave Gardner stock and option awards it valued at $3.6 million, which on paper marked a 44 percent increase. But Windstream based that total on an $11 share price, a level the stock hasn't reached since last September. Shares closed at $8.36 on Monday.

In a regulatory filing, Windstream said it bases executive bonuses on the company's performance, excluding charges and other special items.

The Associated Press's formula 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.

Windstream's earnings fell 55 percent in 2008 to $412.7 million in 2008. Sales slipped 3 percent to $3.17 billion.

In the SEC filing, Windstream said its board decided to freeze top executives' salary, incentive payments and stock-based compensation for 2009 at 2008 levels. It also said it would cut perks, including country club memberships and financial planning, in response to the U.S. economic downturn.