Stocks awards lifted Hasbro CEO's pay 27 percent to $10.4M in '07
BOSTON—
Alfred J. Verrecchia, 65, is due to step down as president and CEO of the world's second-largest toy maker on May 22 and will become chairman of the board at the Pawtucket, R.I.-based company.
Verrecchia helped Hasbro ride out a rocky 2007 for the toy industry. Hasbro recalled about 1 million Easy Bake ovens after reports of about 250 children getting their hands caught in the oven's opening. But the company avoided getting caught up in the millions in recalls of Chinese-made toys for lead paint and other hazards, and earnings climbed 43 percent for the year.
Most of Verrecchia's compensation during his last full year as CEO came from stock and option awards the company valued at $5.4 million, Hasbro said in its filing. He was also paid a $1.2 million salary and $3.6 million from a management incentive plan.
Verrecchia also got perks such as $10,000 for financial and legal services, $2,536 for life insurance premiums and $252,000 that the company used to match his contributions to 401(k) and supplemental plans.
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 companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.
Verrecchia has spent 43 years at Hasbro, and the company values his pension benefits at $17.6 million. He will be succeeded by Brian Goldner, 44, the company's chief operating officer.
Hasbro's annual meeting is scheduled for May 22.
