IP CEO's 2011 compensation up 13% from 2010 to US$13.9M; major reason for jump was larger allocation of IP's stock based on long-term performance share plan, in addition to 11% hike in cash bonus and 5% salary increase

LOS ANGELES , April 6, 2012 () –

International Paper Co. (IP) CEO John Faraci received a 13% raise in his total compensation from the Memphis, Tennessee-based company in 2011 compared with 2010, reported Dow Jones Newswires on April 5.

Faraci received a total 2011 compensation of US$13.9 million, up from $12.3 million in 2010, according to IP’s annual proxy statement, which was filed April 5 with the U.S. Securities and Exchange Commission.

The compensation package includes his salary, a performance-based cash bonus, dividends, executive perks and stock awards, Dow Jones reported.

Most of the compensation increase was due to a larger allocation of IP stock. Under the company’s long-term performance share plan, Faraci received restricted stock valued at $9 million on the day they were granted, up 21% from the value of his stock awards in 2010.

Comparing 2011 to 2010, Faraci’s salary was 5% higher and his cash bonus of $2.5 million was up 11%.

The bonus was attributed to Faraci’s leadership during a year when IP had the “best overall financial results in nearly two decades” and his overseeing of major acquisitions, such as that of Temple-Inland Inc., reported Dow Jones.

Faraci has lately emphasized margin growth from lower costs and improved operations to offset slow sales growth in the developed markets.

Not included in Faraci’s compensation for 2011 was the $7.3 million he received from vesting shares of IP stock that were previously awarded and the value of his pension plan, which dropped to $3.2 million from $5.5 million in 2010, Dow Jones reported.

The primary source of this article is Dow Jones Newswires, Princeton, New Jersey, on April 5, 2012.

 

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