Principal Financial CEO sees 28 percent pay raise for 2007
Posted: Thursday, April 10, 2008
DES MOINES, Iowa (AP) -- Retirement and financial services company Principal Financial Group Inc. paid its retiring CEO total compensation valued at $11.6 million, a 28 percent increase from the year before.
J. Barry Griswell, 58, received a 2007 pay package that included a $1 million salary, which was the same as 2006, and nearly $4.3 million in non-equity incentives, an increase over the $2.5 million received a year earlier.
Griswell, who is leaving the company at the end of the year, also received other compensation of $214,976. That included personal use of the corporate jet and contributions to retirement plans, according to the filing with the Securities and Exchange Commission.
He received $6.1 million in stock options or restricted stock, up 14 percent from the $5.3 million awarded a year earlier.
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 SEC.
On Feb. 5, the company said fourth-quarter profit fell 87 percent as the turmoil in financial markets wiped $211 million off its investment portfolio, including $49 million in lost value to securities connected to the subprime market.
Principal reported net earnings of $34.1 million, or 13 cents a share, compared to $284.1 million, or $1.04 a share, a year ago. Sales rose to $2.90 billion from $2.54 billion a year earlier.
Operating profit fell to $225.8 million, or 86 cents a share, from $252 million, or 93 cents a share a year ago.
For the full year, net profit fell to $827.3 million, or $3.09 per share, from $1.03 billion, or $3.74 a share, in the previous year. Operating profit rose to $1.06 billion, or $3.95 a share, from $972.1 million, or $3.53 a share, a year ago. Sales came to $10.9 billion, compared to $9.87 billion a year ago.
Principal shares fell 2 percent, or $1.12 a share, to $55.28 on Wednesday. They have traded in a 52-week range of $47.23 to $70.85.
The company had earlier reported that Griswell will retire as of Dec. 31.
Larry D. Zimpleman, 56, will assume the role as CEO on May 1. Griswell will serve as executive chairman from May 1 until his retirement.
Zimpleman's total compensation for 2007 was valued at nearly $4.3 million, which included a salary of $620,354 and non-equity incentives of $1.2 million.
He also received $65,846 in perks, which included personal financial services and retirement contributions, and stock options and restricted stock shares worth nearly $2.4 million.
Principal, a leading 401(k) retirement plan provider, also has investment services, life and health insurance, and banking divisions. The Fortune 500 company has $311 billion in assets under management and serves more than 18 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States.
On the Net: Principal Financial Group: http://www.principal.com
J. Barry Griswell, 58, received a 2007 pay package that included a $1 million salary, which was the same as 2006, and nearly $4.3 million in non-equity incentives, an increase over the $2.5 million received a year earlier.
Griswell, who is leaving the company at the end of the year, also received other compensation of $214,976. That included personal use of the corporate jet and contributions to retirement plans, according to the filing with the Securities and Exchange Commission.
He received $6.1 million in stock options or restricted stock, up 14 percent from the $5.3 million awarded a year earlier.
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 SEC.
On Feb. 5, the company said fourth-quarter profit fell 87 percent as the turmoil in financial markets wiped $211 million off its investment portfolio, including $49 million in lost value to securities connected to the subprime market.
Principal reported net earnings of $34.1 million, or 13 cents a share, compared to $284.1 million, or $1.04 a share, a year ago. Sales rose to $2.90 billion from $2.54 billion a year earlier.
Operating profit fell to $225.8 million, or 86 cents a share, from $252 million, or 93 cents a share a year ago.
For the full year, net profit fell to $827.3 million, or $3.09 per share, from $1.03 billion, or $3.74 a share, in the previous year. Operating profit rose to $1.06 billion, or $3.95 a share, from $972.1 million, or $3.53 a share, a year ago. Sales came to $10.9 billion, compared to $9.87 billion a year ago.
Principal shares fell 2 percent, or $1.12 a share, to $55.28 on Wednesday. They have traded in a 52-week range of $47.23 to $70.85.
The company had earlier reported that Griswell will retire as of Dec. 31.
Larry D. Zimpleman, 56, will assume the role as CEO on May 1. Griswell will serve as executive chairman from May 1 until his retirement.
Zimpleman's total compensation for 2007 was valued at nearly $4.3 million, which included a salary of $620,354 and non-equity incentives of $1.2 million.
He also received $65,846 in perks, which included personal financial services and retirement contributions, and stock options and restricted stock shares worth nearly $2.4 million.
Principal, a leading 401(k) retirement plan provider, also has investment services, life and health insurance, and banking divisions. The Fortune 500 company has $311 billion in assets under management and serves more than 18 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States.
On the Net: Principal Financial Group: http://www.principal.com
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