Markets

Abbott CEO White Takes a Pay Cut

By Jim Edwards

Updated on: March 18, 2009 / 6:54 AM EDT / MoneyWatch

Abbott Labs CEO Miles White took a pay cut last year. His total compensation was only $28.3 million, down from $33.3 million the year before, per a proxy filing at the SEC.

The cut came despite the judgment by Abbott's board that White "exceeded" his strategic and financial goals. Abbott's stock outperformed the S&P 500 last year. Revenue and profits were both up. The company said:

Therefore, in February 2009, the Committee awarded Mr. White a Performance Incentive Plan bonus of $4,200,000 for his performance in 2008, intended to recognize his leadership in guiding the Company's industry leading performance.

Here's a summary of who earned what:

Name, 2008 pay, 2007 pay
CEO Miles D. White, $28.3 million, $33.3 million
CFO Thomas C. Freyman, $6.8 million, $8.7 million
EVP John M. Capek, $5.3 million, NA
General counsel Laura J. Schumacher, $5.7 million, NA
EVP James L. Tyree, $6.2 million, $5.7 million
Source: SEC, numbers have been rounded.

The execs also got to use the corporate jet for business but not for pleasure. White and Freyman paid to travel on it for personal reasons. Here's how the company described it:

Non-business related flights on corporate aircraft are covered by time-sharing lease agreements, pursuant to which certain costs associated with those flights are reimbursed in accordance with Federal Aviation Administration regulations. Messrs. White and Freyman have such agreements and reimbursed the Company.