The chief executive of New Britain’s Stanley Black & Decker, John F. Lundgren, took home $38.9 million in 2014, up from $28.6 million the year before.
In a report filed Friday with the U.S. Securities and Exchange Commission, the company attributed the increase in part to a modest increase in salary and incentive pay but mostly to long-term pay such as stock options and shares awards.
Lundgren’s direct pay included $348,587 in other compensation, a catch-all that includes company retirement plan contributions, insurance, a company car, financial planning, an annual physical, the company’s product program, and maintenance of a home-security system.
In addition to his take-home pay for 2014, Lundgren, 63, earned stock awards and options of $7.3 million, the value of which will ultimately depend on how well the company’s stock performs.
Stanley Black & Decker’s stock price increased 19 percent in 2014, while the broader S&P 500 index rose 12 percent.
The hand tools and security company awarded special compensation to certain executives to lower the risk that they might leave the company.
In December, Chief Financial Officer Donald Allan Jr. and Senior Vice President of Tools and Storage Jeffrey D. Ansell received 30,000 shares of restricted stock, valued then at $2.9 million. Senior Vice President of Emerging Markets Jaime A. Ramirez received 10,000 shares of restricted stock, valued at $956,100.
The executives gain access to the shares in five years.
The Hartford Courant calculates compensation as the sum of salary, bonuses, value gained on the exercise of stock options, and the vesting of stock awards, plus other forms of direct pay.
The numbers were reported in an annual proxy filing, which outlines proposals that shareholders will vote on at the company’s meeting in mid April. These include the election of directors, approval of an accounting firm, and approval of the company’s executive compensation, on an advisory basis.
The filing also included the compensation of other named executives:
Chief Operating Officer James M. Loree made $15.6 million in 2014, plus $4.3 million in stock and option awards.
Chief Financial Officer Allan made $7.6 million in 2014, plus $4.4 million in stock and option awards.
Senior Vice President Ansell made $7.7 million in 2014, plus $4.4 million in stock and option awards.
Senior Vice President Ramirez made $2.2 million in 2014, plus $1.9 million in stock and option awards.
