Public companies: Top paid executives

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Federal regulators are trying to make it easier for shareholders to connect the pay of top corporate executives to their companies’ financial performance.

The Securities and Exchange Commission in April voted 3-2 to propose a rule that companies must disclose whether executive pay is in line with their financial performance.

This comes as the latest reports of executive pay are made public, with those in the New Orleans area mostly receiving more stock over salary in their most recent fiscal year.

Entergy Corp. Chairman and CEO Leo Denault topped the 2014 list with $11.8 million in total compensation. That’s about $4 million more than in 2013.

Denault’s payment package included a base salary of $1.1 million, up from $1.04 million in 2013. He received $3.56 million in restricted stock awards, down from $3.78 million in 2013.

Four other Entergy executives were among the area’s top 10 highest paid public company employees.

Roderick West, Entergy’s chief administrative officer, and William Mohl, president of Entergy Wholesale Commodities, saw their 2014 total compensation numbers fluctuate from 2013.

West received $3.63 million, down from $4 million in 2013. Mohl received $3.62 million in 2014, up from $2.77 million in 2013.

The men diverge when it comes to what they received in salary versus stock. West received a base salary of $623,854 in 2014 and $1.01 million in restricted stock awards.

Mohl’s base salary in 2014 was $568,141, while his restricted stock awards were $1.01 million. His base salary of $535,712 in 2013 was greater than his stock and options of $256,000.

He added to his number of shares in 2014 and saw his stock and options grow to $1.3 million, while his base salary decreased to $568,141.

For the year, Entergy’s reported earnings were $940.7 million, or $5.22 per share, while operational earnings were $1,050 million, or $5.83 per share. The company reported 2013 earnings of $711.9 million, or $3.99 per share, and operational earnings of $957.1 million, or $5.36 per share.

Executives with Hornbeck Offshore Services and Tidewater led most of the rest of the top 10 highest paid.

Chairman and CEO Todd Hornbeck was the second highest paid executive in 2014 with $5.9 million in total compensation. Of that, $750,000 was in base salary, up from $601,000 in 2013. Hornbeck saw $4.3 million in restricted stock awards, up from $2.7 million in 2013.

Shareholders have backed leadership, as Hornbeck revenues have increased in each of the past four years, reaching $634 million in 2014. Net income has rebounded since the company recorded a $2.56 million loss in 2011. Last year’s earnings of $87.91 million were 33 percent higher than 2013 numbers.

Jeffrey Platt, president and CEO of Tidewater, saw his total 2014 compensation of $5.26 million drop from his 2013 package of $6.13 million. His base salary in the most recent year was $600,000, compared to $556,417 in 2013. Restricted stock awards in 2014 were $3.32 million compared to $4.22 million in 2013.

The company reported fiscal 2015 adjusted net earnings of $149.7 million, or $3.09 per share, exclusive of a $43.4 million after-tax goodwill impairment charge. For fiscal year 2014, Tidewater reported adjusted net earnings of $183.7 million, or $3.69 per share, exclusive of a $43.4 million after-tax goodwill impairment charge.

Among the region’s publicly traded banks, Hancock Holding Co. president and CEO John Hairston reported $2.4 million in total compensation, up 10 percent from 2013.

Hairston, who shared the CEO role with Carl Chaney, took over that role when Chaney retired in December. Chaney saw $2.26 million package in total compensation, which was lower than the $3.09 million package reported in 2013.

First NBC Bank founder, chairman and CEO Ashton Ryan, Jr. reported $1.46 million in total compensation for the year, up 23 percent from 2013. Company earnings soared 35.8 percent to nearly $56 million.

Generally, shareholders have no problem with the rising levels of executive pay as long as they have also benefited, said Peter Ricchiuti, a business professor at Tulane University.

Other proposed federal measures, such as a maximum ratio between CEO pay and the pay of a company’s average employee, have had very little traction, he added.

“One of the trickier things here is to tie CEO pay to performance while maintaining employee retention and not setting too many short-term hurdles to the detriment of not focusing on the long-term prospects for the company,” he said.

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