BOSTON, March 11 (Reuters) - Diversified U.S. manufacturer Honeywell International Inc cut its top executives' pay last year as a brutal global downturn drove net income down 22.9 percent.
The world's largest producer of cockpit electronics awarded Chief Executive David Cote total compensation worth $13.2 million last year, a 57 percent decline, after Cote asked that neither he nor the company's other top five executives be paid a bonus, according to a filing with the U.S. Securities and Exchange Commission.
Cote's compensation included $1.8 million in salary, $4.3 million in stock awards, $6.4 million in option awards and a combined $796,161 in deferred and other compensation.
The compensation committee of the company's board of directors noted that Honeywell missed its 2009 profit target -- reporting earnings of $2.85 per share, well below its initial $3.20 to $3.55 per share target-- but exceeded its goal on free-cash flow conversion -- generating cash that exceeded earnings.
It said executive pay reflected 'actions taken to mitigate the short-term impact of global economic conditions.'
Keeping free cash flow high was a major focus at Honeywell and other top industrials following a severe global credit crunch. To push free cash flow higher than net income, companies take steps including cutting cost and finding ways to operate with less inventory and other supplies.
Fellow top U.S. industrial United Technologies Corp cut CEO Louis Chenevert's compensation by 13 percent last year. General Electric Co -- which was one of the first in the sector to feel the recession's bite -- raised CEO Jeff Immelt's total pay award by 6.6 percent, though it remained some 30.7 percent below his 2007 award.
Honeywell shares were up 8 cents at $42.42 in early trading on the New York Stock Exchange. Over the past year, they have risen about 67 percent, lagging the 84 percent rise of the Standard & Poor's capital goods industry index but ahead of the 59 percent rise of the broader S&P 500.
(Reporting by Scott Malone, editing by Dave Zimmerman) Keywords: HONEYWELL/ (Boston.Newsroom@thomsonreuters.com; +1 617-856-4342; Reuters Messaging: scott.malone.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The world's largest producer of cockpit electronics awarded Chief Executive David Cote total compensation worth $13.2 million last year, a 57 percent decline, after Cote asked that neither he nor the company's other top five executives be paid a bonus, according to a filing with the U.S. Securities and Exchange Commission.
Cote's compensation included $1.8 million in salary, $4.3 million in stock awards, $6.4 million in option awards and a combined $796,161 in deferred and other compensation.
The compensation committee of the company's board of directors noted that Honeywell missed its 2009 profit target -- reporting earnings of $2.85 per share, well below its initial $3.20 to $3.55 per share target-- but exceeded its goal on free-cash flow conversion -- generating cash that exceeded earnings.
It said executive pay reflected 'actions taken to mitigate the short-term impact of global economic conditions.'
Keeping free cash flow high was a major focus at Honeywell and other top industrials following a severe global credit crunch. To push free cash flow higher than net income, companies take steps including cutting cost and finding ways to operate with less inventory and other supplies.
Fellow top U.S. industrial United Technologies Corp cut CEO Louis Chenevert's compensation by 13 percent last year. General Electric Co -- which was one of the first in the sector to feel the recession's bite -- raised CEO Jeff Immelt's total pay award by 6.6 percent, though it remained some 30.7 percent below his 2007 award.
Honeywell shares were up 8 cents at $42.42 in early trading on the New York Stock Exchange. Over the past year, they have risen about 67 percent, lagging the 84 percent rise of the Standard & Poor's capital goods industry index but ahead of the 59 percent rise of the broader S&P 500.
(Reporting by Scott Malone, editing by Dave Zimmerman) Keywords: HONEYWELL/ (Boston.Newsroom@thomsonreuters.com; +1 617-856-4342; Reuters Messaging: scott.malone.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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