Range Resources CEO's Compensation Up 23 Percent

ERNEST SCHEYDER

NEW YORK (AP) — The chairman and chief executive of independent oil and gas company Range Resources Corp. received compensation valued at $7.4 million in 2008, a 23 percent increase from the previous year, according to an Associated Press analysis of data filed with regulators Monday.

The Fort Worth, Texas-based company paid John H. Pinkerton $557,500 in base salary, up 11 percent from the previous year, and a performance-based cash bonus of $945,000, about flat with his 2007 payout.

Range Resources also awarded Pinkerton $131,014 in perks, including $27,484 for a personal secretary, $29,257 in disability insurance premiums and $4,443 for his spouse's travel.

But the bulk of his compensation came in the form of stock- and option-based awards valued at $5.7 million when they were granted in 2008, up 29 percent from similar awards granted during the previous year.

However, the stock awards are now worth much less due to a drop in the company's share price, and the options are currently "underwater." The exercise price on about $2.6 million worth of options is $75, well above the stock's Monday closing price of $43.85. That means the options are currently of little value absent a major rebound in share price.