Williams Cos. CEO Earns 10 Percent More In 2008

DEBORAH JIAN LEE

TULSA, Okla. (AP) — The chief executive of natural gas provider Williams Cos. earned 10 percent more in 2008 than the previous year, according to an Associated Press analysis of a filing made with the Securities and Exchange Commission.

Tulsa-based Williams Cos. gave Steven Malcolm a 2008 pay package valued at $8.9 million, compared with $8.1 million in 2007.

The bulk of his compensation came from stock options and restricted stock valued at $5.8 million when they were granted. These awards are worth less today as the value of the company's stock has fallen 60 percent since the grant date. Shares of the company currently trade far below the options' exercise price of $36.50.

Malcolm, 60, received a salary boost of 4 percent to $1.09 million. His performance-related bonus tumbled 16 percent to $2 million, compared with $2.4 million in 2007. Malcolm also received $56,215 in perks, mostly for personal use of the company's aircraft.

The Associated Press 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.