Dean Foods CEO received $12M in 2006

Dean Foods CEO received $12M in 2006

	Published : Thu, 19 Apr 2007 17:37 By : Agencies Print this Story

NEW YORK (AP) - Dean Foods Co. Chairman and Chief Executive Gregg L. Engles received compensation valued by the company at $12 million in 2006, according to the milk and dairy products producer's proxy statement filed Thursday.

Engles was awarded a base salary of $1.2 million and $2.2 million in non-equity incentive plan compensation.

He received $423,200 in other compensation, which included $15,338 for club memberships, $150,720 in company contributions to his retirement plans and $257,142 for personal use of company aircraft.

The Dallas-based company also awarded Engles shares and options valued at $8.1 million on the day they were granted.

Separate from his annual compensation, Engles realized $57.7 million on exercising option awards and $4.5 million on vesting stock awards.

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.

At the company's May 18 annual meeting, shareholders will be asked to vote on a proposal submitted by the International Brotherhood of Teamsters, according to the proxy statement filed with the securities and Exchange Commission. The Teamsters are the custodian and trustee of the Teamsters General Fund, which beneficially owns about 100 shares of common stock.

The proposal seeks to have the bylaws amended to prevent the company's chairman from concurrently serving as CEO. The fund argues that having the same individual fill both roles 'necessarily impairs the chair's ability to hold the CEO accountable.'

Dean Foods recommended that shareholders vote against the proposal. 'Our board of directors takes seriously its responsibility to oversee our chief executive officer and other members of management, and believes that it is effective in its efforts,' the company said.

In 2006, Dean Foods' earnings fell 27 percent to $225.4 million, or $1.61 per share. Revenue was about flat at $10.1 billion.

Dean Foods shares rose 2 cents to $35.80 on the New York Stock Exchange Thursday. The stock gained about 12 percent last year, but it has fallen about 15 percent since the beginning of 2007.