Paccar CEO Got $10.5M Compensation In 2008

By The Associated Press

Truck manufacturer Paccar Inc.'s chief executive, Marc C. Pigott, received compensation valued at $10.5 million in 2008, according to an analysis by The Associated Press, up 27 percent from the prior year, even as the executive declined a performance-based bonus amid the current economic recession.

Bellevue, Wash.-based Paccar, which manufactures Peterbilt and Kenworth trucks, paid Pigott a $1.3 million salary and $11,500 in matching contributions to the company's 401(k) plan, it said in a proxy statement filed Friday.

However, the bulk of his compensation was $9.1 million in what Paccar estimated to be the fair value of restricted stock and stock option grants at the time they were awarded last year.

When the stock awards were granted, the company's shares were trading at about $44. Shares closed Monday at $23.79, cutting their value almost in half.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, 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.