NEW YORK (AP) ¿ Zimmer Holdings Inc. Chief Executive David C. Dvorak received 40 percent less compensation in 2008 on a decline in the value of stock and stock options.

Dvorak, 45, received overall compensation of just under $6.2 million, down from $10.3 million a year prior. His salary rose 23 percent to $742,308 while his performance-based cash bonus rose 69 percent to $691,350. Perks, which include contributions to his retirement plan, fell slightly to $38,977.

The bulk of his compensation, though, was in the form of stock options. Dvorak received 200,000 options to buy shares at $76.33 each. The fair-market value for those options on the day they were granted in February 2008 was about $4.7 million, though the options are currently "underwater" or worth little, since the stock is trading under $35 a share.

In 2007, Dvorak received stock-based compensation of $9.3 million.

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."

The Warsaw, Ind.-based orthopedic implant maker faced slowing sales and unfavorable currency exchange rates toward the end of the year. Adjusted profit for 2008 fell 4 percent to $924.3 million, though revenue rose 6 percent to $4.12 billion. Also, Zimmer closed the buyout of Abbott Spine in October, adding the company to its own spine business.

Shares fell 39 percent in 2008 to close at $40.42.

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