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

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.