An interesting article, for those interesting in Industry news, has appeared on Yahoo Finance, which is more indication of the growing fortunes of Hasbro Inc.PROVIDENCE, R.I. (AP) -- Hasbro Inc. President and Chief Executive Alfred J. Verrecchia received compensation valued at $8.2 million in 2006, a year when the nation's second largest toy maker saw 11 percent growth in its core board game business, a regulatory filing Monday shows.
Verrecchia's compensation included $1 million in salary and $3 million in non-equity incentive plan compensation, according to a proxy statement the company filed with the Securities and Exchange Commission.
He also was awarded stock and options that had an estimated value of $4.1 million when they were granted, and he received $162,036 in other compensation, most of which was company contributions to a 401(k) plan, the proxy said.
The Associated Press' calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock and option awards granted during the year. The calculations don't include changes in the present value of pension benefits and sometimes differ from the totals released by the companies.
Hasbro valued Verrecchia's pension at $12.3 million, crediting him with 41 years of service.
If Verrecchia leaves the company, his severance package could range anywhere from $5.2 million for a mutual parting of ways to $31 million if Verrecchia is fired without cause, Hasbro said. If he dies, his estate would be paid $7.2 million.
Hasbro reported 2006 net earnings of $230.1 million, compared with $212.1 million the previous year. Revenues were $3.2 billion, up 2.1 percent from 2005.
The company plans to hold its annual shareholders meeting May 24 at its corporate offices in Pawtucket.
Hasbro's board said it's asking shareholders to approve a company proposal to allow it to increase the amount of shares Hasbro is allowed to grant to employees and directors under its Stock Incentive Performance Plan by 7,500,000. Otherwise, the company said, it will not have enough shares to meet one more year's worth of equity grants.
Another proposal, by a shareholder, would require the toy company's board of directors to publish a sustainability report, which would include Hasbro's policies on social, environmental and economic sustainability and the company's long-term sustainability plans. The board opposes the proposal, saying the company already is committed to producing environmentally responsible products and has reduced its use of twist ties and adhesive tape in its packaging and shipping cartons.
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