Kimberly-Clark Corp. CEO Thomas J. Falk's compensation edged up 1 percent last year to nearly $9 million as the maker of Huggies diapers and Kleenex tissues improved its profit due to price hikes, according to an Associated Press analysis of regulatory filings.
Falk, 51, received more than $2.8 million in a performance-related bonus for the fiscal year ending Dec. 31, according to a filing with the Securities and Exchange Commission Friday. That figure more than doubles the amount from the previous year of $943,247.
His salary remained the same at $1.2 million and his overall compensation was nearly flat because he earned 26.5 percent less in stock options and restricted stock last fiscal year. They were worth $4.9 million when granted, down from $6.6 million the previous year.
Falk's compensation also included $78,394 in perquisites, or "perks," including $32,277 for personal use of the company's plane, and $7,350 in defined plan contributions. He received $36,695 for security, and $2,072 for health screening.
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 options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals that companies list in the summary compensation table of proxy statements filed with the SEC.
Falk has been CEO of the company, based in Dallas, since 2002. Kimberly-Clark is also the maker of brands like Depend undergarments, Cottonelle and Scott paper products.
Overall, Kimberly-Clark has weathered the recession well. Analysts say it is guarding its profits by raising prices as far back as 2008 to account for rising costs for key components like pulp. The price hikes are helping it withstand dips in sales as shoppers cut back on their spending. But the company also has to promote its products to stir up sales, which hurts profits.
In fiscal 2009, earnings rose 11 percent to $1.88 billion, or $4.52 per share, while sales fell 2 percent.
The company plans to come out with new products early this year to keep shoppers interested. It recently announced the introduction of new thick, paper hand towels, which it hopes will replace traditional cloth towels. The goal is to take advantage of lingering swine flu fears.
Kimberly-Clark shares rose 20 percent in the year to finish at $63.71. Shares rose 31 cents to $60.02 in morning trading Friday.
