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CEO Of Vulcan Materials Loses Bonus In Recession

The Associated Press

HARTFORD, Conn. (AP) — Donald M. James, chief executive of Vulcan Materials Co., which supplies sand and gravel for highway construction, received a compensation package in 2008 of nearly $4.5 million, down more than half from the previous year as the company eliminated its bonus because financial goals were not met, an analysis of a regulatory filing showed.

James was paid a salary of $1.2 million, up about 5 percent from 2007 and received other compensation of $431,049 in thrift plan contributions and other financial benefits, according to a regulatory filing Wednesday. He also received $2.8 million in stock options and restricted stock, which was down by nearly half from 2007.

James, 60, did not receive a performance bonus, though he received a $2.9 million bonus in 2007.

The company said each of the executive officers "performed well in a difficult economic environment."

However, using profit goals and incentive plan formulas, Vulcan Materials said results at the corporate level "fell sufficiently short of the performance goal that no bonus payments were made to the chief executive officer or any of the other named executive officers."

The Associated Press' compensation formula aims 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.

For 2008, Vulcan reported its net income fell to $228.6 million, or $2.06 per share, from $450.9 million, or $4.54 per share, in 2007. Earnings from continuing operations in 2008 totaled $231 million, or $2.08 per share. Total revenue rose to $3.65 billion, from $3.33 billion, in 2007.