STEPHEN SINGERHARTFORD, Conn. (AP) ¿ David Steiner, chief executive of Waste Management Inc., received a compensation package of almost $6.2 million for 2008, down slightly from 2007 as the nation's No. 1 trash hauler cut his performance bonus to reflect the company's weaker results in a deteriorating economy, an analyis of a regulatory filing showed. Steiner was paid a salary of $1.1 million, up nearly 7 percent from 2007, according to a filing Wednesday with the Securities and Exchange Commission. He also got a performance-related bonus of $1.1 million, down more than one-third from $1.6 million the previous year. In addition, he received $153,976 in other compensation, primarily for his personal use of the Houston-based company's jet and deferral plan matching contributions. Steiner also received stock awards and options the company valued at $3.9 million when they were awarded on March 3, 2008. His total compensation in 2008 was down 0.6 percent from $6.24 million in 2007, the AP analysis showed. The Associated Press' compensation formula aims 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. In calculating Steiner's bonus, Waste Management said threshold performance measures are the minimum performance required to receive a bonus payment "and the measures for 2008 reflect an essentially flat performance over 2007." Due to the deteriorating economy, the company said executives should still earn a bonus, "albeit at a much lower level." For 2008, net income was $1.09 billion, or $2.19 per share, down 6.5 percent from $1.16 billion, or $2.23 per share. Revenue climbed to $13.39 billion from $13.31 billion. Analysts have credited Steiner for raising prices as trash volumes have fallen in the recession. As the industry's leader, Waste Management is expected to keep prices up to avoid a deflationary spiral. In October, Waste Management withdrew a $6.73 billion bid to acquire smaller rival Republic Services, saying the move wouldn't be prudent due to turmoil in the financial market.
The takeover struggle began in July when Waste Management offered to buy rival Republic Services Inc., the nation's No. 3 trash hauler, in a move widely seen as an attempt to derail Republic Services' bid for Allied Waste Industries Inc. In November, shareholders of Republic Services and Allied Waste Industries approved a merger creating the second-largest U.S. trash-hauling company and a larger competitor to Waste Management.