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National Oilwell CEO Received $9.8M Compensation

The Associated Press

HOUSTON (AP) — The chief executive of National Oilwell Varco Inc. saw his 2008 total compensation jump 49 percent for the same year the oilfield service provider reported a rise in profit, despite a battered economy and oil industry, according to an Associated Press calculation of figures disclosed in a filing with the Securities and Exchange Commission made Wednesday.

Merrill Miller's total pay package climbed to $9.8 million in 2008 from $6.6 million the prior year, but much of that rise was driven by $6.9 million in options and restricted stock that have shed some value as the company's share price has plunged more than 56 percent since the Feb. 19, 2008, grant date.

In 2008 the company increased Miller's salary 19 percent to $950,000 and his performance-based bonus 14 percent to $1.8 million. In 2007 the company paid him a salary of $800,000 and a performance-based bonus of $1.6 million.

Miller, 58, also received $42,430 in "other" compensation, which includes company contributions to his savings and 401K plans, up 15 percent from a year earlier.

Miller, CEO since 2001, led the company toward 2008 profit growth amid an energy market reeling from the declining price of crude oil, which forced many companies to halt capital projects and demand for oil services.

In 2008, National Oilwell Varco's profit jumped 45 percent to $1.95 billion, or $4.90 per share, from $1.34 billion, or $3.76 per share. Revenue rose 37 percent to $13.43 billion.

The company's share price over the course of last year plunged 67 percent to close the year at $24.44 per share. In morning trading, the stock was off 12 cents at $28.59 from Tuesday's close.

The Associated Press compensation formula is designed to isolate the value the company's board placed on the executive's total compensation package during the past 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.