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RICHMOND, Va. (AP) â¿¿ Coal producer Alpha Natural Resources Inc. CEO Kevin Crutchfield received a pay package valued at more than $6.7 million in 2011, down 21 percent from 2010, according to an Associated Press analysis of a regulatory filing.
The pay package came in a year the Bristol, Va.-based company lost $677.4 million, compared with a $95.6 million profit in 2010. Alpha booked $745 million in charges due to weak demand for coal and new environmental regulations. It also had $402 million in expenses related to its acquisition of Massey Energy Co.
Revenue increased 81 percent to $7.1 billion. Coal shipments rose more than 25 percent to 106.3 million tons in 2011, compared with 84.8 million tons in 2010, with much of that increase coming from the addition of former Massey operations.
There is less demand for coal used in steel-making and power generation in the wake of tough new emissions regulations like the EPA's Cross-state Air Pollution Rule. CSPAR has been delayed by a federal appeals court ruling, yet Alpha has said it's already pushing utilities to buy less coal and, in some cases, close down coal-fired power generators altogether.
At the same time that regulations are tightening, natural gas prices have plunged, giving utilities a cheap alternative to coal.
Crutchfield's compensation package was disclosed Tuesday in an annual proxy filing with the Securities and Exchange Commission.
His salary increased 18 percent to $1 million, while the value of his stock options and awards fell 34 percent to $4.89 million. He also was given other compensation, including company matches to his 401(k) plan and a vehicle allowance, worth $273,902.
Crutchfield, 51, also received a bonus of $528,000 for the company's 2011 safety performance. Alpha Natural Resources said 84 of its operations reported no lost-time accidents in 2011 and 65 operations had zero reportable injuries. In addition former Massey mines saw various safety improvements and decreased enforcement actions from the federal Mine Safety and Health Administration.