Tyson officers' payment up 83%

Stock rose 132% 2010 through ’14

Executives at Tyson Foods have seen huge pay increases since the company's fortunes improved in 2012, but the raises haven't been spread evenly among top officers.

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Arkansas Democrat-Gazette

A listing of Tyson Foods executives raises from 2010 to 2014.

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Special to the Democrat-Gazette

Dennis Leatherby, chief financial officer for Tyson Foods Inc.

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NWA Democrat-Gazette

In this file photo James Lochner (now retired), Chief Operating Officer of Tyson Foods, speaks during the annual Tyson shareholders meeting Friday February 5, 2010 at the Northwest Arkansas Convention Center in Springdale.

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Special to the Arkansas Democrat-Gazette

Donnie Smith, chief executive officer for Tyson Foods, Inc.

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NWA Democrat-Gazette

In this file photo John Tyson (chairman of the board for Tyson Foods) announces a $2 million gift from the Tyson Family Foundation to the Jones Center Endowment Fund Tuesday, May 20, 2014 at the Jones Center in Springdale. The money will help add to a $10 million matching endowment from the Walton Family Foundation.

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Special to the Arkansas Democrat-Gazette

Noel White, president of poultry for Tyson Foods, Inc.

Tyson Foods' executives made a total of $50.4 million dollars in 2014 -- an 83 percent raise from 2010. Over the same period, the company's stock rose 132 percent -- from $16.26 at the end of fiscal 2010 to $37.74 at the end of fiscal 2014.

"You generally get what you pay for," said Bob Williams, senior vice president and managing director of Simmons First Investment Group in Little Rock. "You have to be able to compete to hire and keep top talent."

One-third of the total pay jump went to John Tyson, chairman of the board. He has received a 406 percent raise since fiscal 2010 and was paid $8.8 million in fiscal 2014, according to a public filing.

His pay first spiked in 2011 when he was promoted to an executive officer within the company. Previously, he had served as the non-executive chairman of the board. He remained chairman after the promotion.

When asked what the changes to Tyson's duties were, Gary Mickelson, a spokesman, referred to Tyson Foods' public filings.

According to the filings, Tyson, while serving as chairman, stopped serving as an executive officer in 2007. He provided advisory services at the company until 2011, when he was made an executive again.

"Mr. Tyson has devoted his professional career to the company and brings extensive understanding of the company, its operations and the protein and food processing industries to the board," according to filings.

Mickelson did not respond to further requests for comment.

The second spike occurred in 2013 as Tyson Foods stock climbed 79 percent. Other executives received pay bumps, but Tyson's was the largest -- $3.8 million dollars, a 90 percent raise.

Tyson also now has personal access to a company aircraft for 275 hours per year -- a 75 hour increase from last year.

Donnie Smith, chief executive of the company, has access to the plane 50 hours a year. And from 2010 to 2014, Smith received the smallest percent increase of any executive officer -- 35 percent.

In public filings, Tyson Foods said executive pay is determined by the company's performance and the employee's contribution.

Each executive's total compensation is composed of a base salary, performance incentives, stocks and financial, welfare and retirement plans. Each executive's base salary can be increased or decreased -- except for Tyson's, which can only increase.

And each executive's pay is determined by a compensation committee that looks at data from a group of similar companies -- except Tyson's "due to insufficient data."

In a required "say on pay" vote -- in which shareholders get to vote on top executives' pay -- in 2013, the pay packages were approved, but the Tyson Limited Partnership comprises most of the votes.

Williams said it's wise to tie pay to performance, but cautioned that it's sometimes done in name only.

"My opinion on pay tied to stock price is I'm all for it -- as long as pay goes down when the stock goes down," he said.

SundayMonday Business on 01/18/2015

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