The compensation for Caterpillar Inc.’s Jim Umpleby III reached $14 million in his first year as chief executive of the manufacturer.
Umpleby became chief executive on Jan. 1, 2017, replacing Doug Oberhelman. Oberhelman stepped down as chairman on April 1, 2017.
Umpleby was paid $1.2 million in salary as chief executive. That was up from $825,636 in 2016 when he served as a group president.
By comparison, Oberhelman was paid $1.6 million in salary and total compensation of $15.5 million for fiscal 2016.
Total compensation for Umpleby as group president was $5.23 million in 2016.
The company said in its proxy statement that Umpleby’s $1.2 million annual salary “was below the peer group median.”
The compensation committee of the company’s board of directors approved raising Umpleby’s 2018 salary to $1.5 million, effective April 1.
“The committee specifically noted Mr. Umpleby’s strong performance in his first year as chief executive, and sought to align his salary more closely to the peer group median,” according to the proxy.
Umpleby was paid a $1.07 million cash bonus in 2017, as well as $2.43 million in incentive pay. He received stock and option awards valued at $9.65 million on the date they were awarded.
He also received all other compensation worth $685,287, including: $585,105 for moving expenses tied to Caterpillar moving its corporate headquarters to the Chicago suburb of Deerfield, Ill., $39,000 in reimbursement for home security; $34,493 in a company match to a senior executive compensation plan; $18,611 for personal use of corporate aircraft or other transportation; and $8,078 in a company match to his 401(k) plan.
For the full year, Caterpillar had $4.08 billion in net income, compared with $139 million a year ago. Caterpillar took restructuring, goodwill and other charges worth $2.6 billion in fiscal 2016.
Adjusted profit for fiscal 2017 was $5.55 billion. Caterpillar absorbed a $2.4 billion charge in the fourth quarter as the result of adjustments required as the federal corporate tax rate decreased from 35 percent to 21 percent on Jan. 1.
The company operates a $426 million plant in Winston-Salem.
Caterpillar officials said the plant has 160 full- and part-time employees with its Progress Rail subsidiary that took over operations in January 2017. The local workforce is down from a peak of 438 and a pledge of 510 full- and part-time employees.
Bradley Halverson, chief financial officer and a group president, received a 2.2 percent raise in salary to $804,078, along with a 62.6 percent increase in incentive pay to $1.39 million and total compensation of $7.6 million, up 45.4 percent.
Robert Charter, a group president, received $756,192 in salary, along with $1.24 million in incentive pay and total compensation of $7.13 million, up 35.4 percent.
Bob De Lange, a group president, was listed as a top-five executive for the first time in 2017. He received $664,221 in salary, $1.38 million in incentive pay and total compensation of $7.72 million.
Thomas Pellette, a group president, also was listed as a top-five executive for the first time in 2017. He received $756,912 in salary, $1.3 million in incentive pay and total compensation of $7.34 million.
There are three shareholder proposals on the agenda for the June 13 shareholder meeting in San Antonio, Texas.
They are: decrease the percentage of ownership required to call a special shareholder meeting; amend its compensation clawback policy; and require human rights qualifications for director nominees.
The board recommends against each shareholder proposal. The ownership requirement and clawback compensation proposals were voted down last year.
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