Nolan D. Archibald, who led the former Black & Decker into a deal to create New Britain-based Stanley Black & Decker and then served as the new company's executive chairman, brought home $123.6 million last year, federal filings Tuesday show.
The company's chief executive, John F. Lundgren, made $28.6 million last year, just over double his take-home pay the year prior, when his pay was $14 million. Most of his compensation package came from the exercise of $25.2 million of previously awarded stock options and stock awards that vested in 2013.
In addition to Lundgren's higher pay, Stanley Black & Decker also awarded him options and stock awards, now valued at $6.8 million. The ultimate value of the options will depend on how well the company's stock performs; the stock will only be awarded after a vesting period if the company meets certain financial performance targets.
Former Executive Chairman Archibald received most of his compensation in the form of a bonus, based on the amount of costs cut through his former company's merger with Stanley Works in 2010. The cuts resulted from numerous rounds of layoffs, the number of which were never revealed by the company, as well as other efficiencies.
Archibald, who retired a year ago, was awarded $51.4 million for exceeding the goal of $350 million in savings from the deal. His salary was $308,140, and he received $441,429 in other compensation such as personal use of the company's private aircraft and a car allowance. Most of his pay, though, came through the exercising of stock options and the vesting of shares, which together amounted to $71.1 million.
The Courant calculates compensation as the sum of salary, bonus, value exercised from stock options and vested stock awards, plus other forms of direct pay, such as incentive payments and personal use of corporate aircraft.
From Jan. 1 to Dec. 31 last year, Stanley Black & Decker's stock increased 12 percent to $80.69 a share. Revenue increased 8.4 percent for the year, and net income rose about 4.7 percent.
The details were contained in Stanley Black & Decker's proxy statement filed with the U.S. Securities and Exchange Commission on Tuesday in advance of a shareholder meeting in mid April, where votes will be conducted on the election of directors, the company's executive compensation packages, auditor approval and other proposals.
The company's proxy also listed compensation for other key company executives: Donald Allan Jr., chief financial officer, $4.9 million; Jeffery D. Ansell, group executive of construction and DIY, $5.2 million; D. Brett Bontrager, group executive of Stanley security solutions, $4.9 million; and James M. Loree, president and chief operating officer, $12.3 million.