NEW YORK (AP) - The chairman, president and chief executive of Genuine Parts
Co. received compensation valued at $3.6 million in fiscal 2007, a 6 percent
increase from the previous year, according to a regulatory filing Friday.
The Atlanta-based auto parts distributor awarded Thomas C. Gallagher a base
salary of $835,000, a 4 percent raise from 2006, and a cash incentive bonus of
$1.3 million.
Gallagher also received stock and option awards valued at $1.3 million on
the days they were granted.
Additionally, Genuine Parts awarded Gallagher $163,189 in all other
compensation, which included 401(k) matching contributions of $2,700, personal
use of company aircraft and club membership dues.
Gallagher's total pay package in 2006 was valued at $3.4 million, according
to a calculation by The Associated Press.
The AP's total pay calculations 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 companies list in the summary compensation
table of proxy statements filed with the Securities and Exchange Commission.
According to its proxy filing, Genuine Parts believes that both short-term
and long-term incentive compensation should be directly aligned with company
performance. As a result, the company said it provides "somewhat conservative
base salaries and higher-than-average target bonus opportunities, to focus less
on fixed pay and more on performance-based opportunities."
Genuine Parts said it analyzes the compensation data of a peer group that
includes those companies that make up the Dow Jones Auto Parts and Equipment
Index, as well as Applied Industrial Technologies Inc., Kaman Corp. and United
Stationers Inc.
For fiscal 2007, net income rose 7 percent to $506.3 million, or $2.98 per
share, from $475.4 million, or $2.76 per share, in 2006. Revenue grew 4 percent
to $10.84 billion from $10.46 billion the year before.
Shares fell $1.24 to $41.48 in afternoon trading. Shares have fallen about
20 percent from a high of $51.68 in September.
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