CEO PAY WATCH PIPER JAFFRAY COS.
Andrew Duff, chairman, CEO Total compensation: $2,002,438 for the year ended Dec. 31
Salary: $400,000
Bonus: $1,200,000
Other compensation: $11,691
Exercised stock options: $0
Value realized on vesting shares: $390,747
New stock options: 0
Total return to shareholders: 27.3 percent
Note: Duff took home nearly 8 percent less in 2009, mainly because he had fewer gains from the vesting of stock awards. He received a $1.2 million bonus as Piper Jaffray returned to profitability in 2009. Piper earned $30.4 million in 2009 after a net loss of $183 million in 2008; 2009 revenue increased 39.8 percent to $482.5 million.
Piper Jaffray is making changes to its 2010 executive compensation plan. It has held salaries constant over the last several years, except for increases to reflect promotions. Duff's salary was the same for the past three years. For 2010 the company raised the percentage of salary and reduced the percentage for bonuses as part of the total compensation mix; as a result, Duff's base salary will increase from $400,000 to $650,000. Other members of the senior leadership team will get similar salary increases this year. By increasing base salaries and reducing the annual incentive percentage, the company is trying to lower the potential for excessive risk-taking.
Duff also received a long-term incentive award of $1.2 million in restricted stock for 2009 performance; the final value of that award will depend on the company's performance over the vesting period.
PATRICK KENNEDY
