Less stock means lower compensation for Valspar CEO

Total compensation for The Valspar Corp.’s CEO William Mansfield dropped 24 percent in 2006, even though his salary and bonus both jumped, the company reported Friday.

According to Valspar’s proxy statement for fiscal year 2006, which ended Oct. 27, Mansfield earned $826,923 in salary, and received a $2,797,067 bonus. In 2005, he received $680,173 in salary and a $359,131 bonus. However, his total compensation dropped to $5.1 million in 2006, from $6.7 million in 2005.

The larger bonus he was awarded this year was in lieu of restricted stock, the company said. He didn’t receive any restricted stock in 2006, whereas in 2005 he was awarded restricted stock worth $998,197.

Additionally, in 2006 he received only 65,000 shares in stock options, valued at about $1.1 million assuming a 5 percent appreciation over 10 years. In 2005, he received 318,000 stock options, worth about $4.5 million using the same valuation method.

Minneapolis-based paint and coatings maker Valspar (NYSE: VAL – News) saw record net income of $175 million, up 19 percent from 2006. Sales for the year were up about 10 percent, to $2.98 billion.

When the company announced those year-end results in November, Mansfield said that based on the momentum of recent acquisitions and consumer paint brands, the company should have another record year in 2007 and post earnings per share between $1.80 and $1.90.

Published January 26, 2007 by the Minneapolis / St. Paul Business Journal