Smith International Former CEO Gets $3.5M In '08

DEBORAH JIAN LEE

HOUSTON (AP) — In a year when its profit rose but its stock tumbled 69 percent amid a battered energy market, oilfield services company Smith International Inc. lowered the value of its chief executive's total compensation almost 60 percent according to an Associated Press calculation of figures disclosed in a filing with the Securities and Exchange Commission.

Doug Rock, who served as the Houston-based company's chairman, chief executive, president and chief operating officer in 2008, saw his total pay package fall to $3.5 million, compared with the $8.6 million he earned in 2007.

The bulk of this compensation cut came from the fact that in December 2008 the company did not award Rock any performance-based restricted stock units, after he stepped down from his position at year-end. Rock entered an employment agreement with the company to serve as a special executive adviser to the chief executive officer for about one and a half years. John Yearwood has taken the reins as chief executive, president and chief operating officer. In 2007, Rock received awards valued at $5 million on the date they were granted.

Smith International also cut Rock's performance-based bonus 27 percent to $1.3 million, compared with $1.8 million in 2007.