Most got pay boosts in '07
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May 11, 2008 - 12:01AM
By WAYNE HEILMAN
THE GAZETTE
What recession?
Compensation for chief executives of Colorado Springs-based public companies in 2007 - including salary, bonus, perquisites and stock awards and options - jumped 28.6 percent from a year earlier.
Seven men who held the CEO post in five of the six public companies based in the Springs took home $6.81 million in compensation last year, according to proxies filed with the Securities and Exchange Commission. Golden Cycle Gold Corp. has not yet filed its 2008 proxy.
Ramtron International Corp. CEO William Staunton received the most compensation and biggest pay hike, but the company's chief financial officer, Eric Balzer, wasn't far behind. Both more than tripled their 2006 compensation to $1.69 million and $1.1 million, respectively.
Public companies must spell out executive pay, benefits and socalled golden parachute severance agreements in their proxy filings, which also tells stockholders when and where the annual meeting will be.
Ramtron directors boosted executive bonuses and stock awards last year as recommended by Boston-based compensation consultant DolmatConnell & Partners to reach the median level of similar-size semiconductor companies, according to the company's proxy filing.
The executive pay hikes "reflect a recalibration of compensation by the company as advised by our compensation consultant," Ramtron spokesman Lee Brown said earlier this month. "Obviously the company is doing better (financially), and compensation follows it."
Not every local CEO got a raise - compensation fell for both Spectranetics Corp. CEO John Schulte and Simtek Corp. CEO Harold Blomquist, mostly for failing to meet financial targets. Former Westmoreland Coal Co. CEO Chris Seglem made less because he got the ax in May 2007.
The top golden parachutes for local CEOs went to Erwin Haitzmann and Peter Hoetzinger, co-CEOs of Century Casinos Inc. Each would receive more than $5.66 million if they lost their jobs, including three years of pay, three times their 2007 bonus plus stock options.
Here are the details of each local public company's CEO pay package:
- Ramtron International Corp.
Business: Semiconductors
Annual meeting: May 22 in Colorado Springs
CEO: William Staunton
2007 compensation: $1.69 million
2006 compensation: $515,298
Change: Up 228.4 percent
Increases and declines: Received $560,000 bonus last year and none in 2006; stock awards increased by $471,791; stock options more than doubled to $172,545.
Rationale: Executive compensation consultant DolmatConnell & Partners found that Ramtron's bonuses and stock options fell well below the median of similar-size public companies. As a result, Ramtron directors awarded stock to the company's top three officers late last year.
Golden parachute: $4.18 million, including two years' salary plus two times the 2007 bonus as well as automatic vesting of stock options and 18 months of continued benefits.
Other executives: Chief Financial Officer Eric Balzer's compensation surged 227.9 percent last year to $1.1 million.
- Century Casinos Inc.
Business: Owns or operates casinos in Cripple Creek, Central City, Canada, Czech Republic, Poland, South Africa and aboard cruise ships.
Annual meeting: June 16 in Central City
Co-CEOs: Erwin Haitzmann and Peter Hoetzinger
2007 compensation: $1.04 million for Haitzmann, $1.02 million for Hoetzinger
2006 compensation: $734,298 for each executive
Change: Up 41.9 percent for Haitzmann, up 39.9 percent for Hoetzinger
Increases and declines: For each executive, salary increased $115,113, bonuses fell by $117,500, received $359,600 in stock awards last year and none in 2006, stock options fell by $119,467; company paid combined premium of $87,933 on life insurance last year and none in 2006.
Rationale: Stock awarded "for past service and as an incentive to continue employment." The compensation committee of Century's board "took into account the asset growth and employee growth of the company since the last award was made in March 2004."
Golden parachute: $5.65 million for each executive, including three years of pay, three times the 2007 bonus, three additional years of consulting payments and immediate vesting of all stock options.
- Spectranetics Corp.
Business: Manufactures medical lasers
Annual meeting: June 18 in Colorado Springs
CEO: John Schulte
2007 compensation: $603,099
2006 compensation: $887,016
Percent change: Down 32 percent
Increases and declines: Stock options fell by $236,609; bonus fell by $69,184 and salary increased by $29,039.
Rationale: The compensation committee of Spectranetics' board "determined the company's performance for 2007 was below the target level for each target and at target achievement for the qualitative goals."
Golden parachute: $586,434, including one year of salary, bonus and benefits
Other executives: Chief Operating Officer Jonathan McGuire, who joined Spectranetics in October 2005, made $216,843 more than Schulte, mostly because of $112,761 in relocation expenses and $363,334 in stock options. Spectranetics grants stock options upon hire, "a significant change in job responsibility or in recognition of a significant achievement."
- Simtek Corp.
Business: Semiconductors
Annual meeting: June 19 in Colorado Springs
CEO: Harold Blomquist
2007 compensation: $743,266
2006 compensation: $1.12 million
Change: Down 33.8 percent
Increases and declines: No bonus in 2007 compared with a $261,383 bonus in 2006; 2006 compensation included $209,576 in relocation expenses; salary was unchanged; stock options increased by $79,115.
Rationale: "During 2007, achievement against our net income factor was approximately 31 percent of target, which was below the minimum threshold" for a bonus.
Golden parachute: $1.2 million, including 1½ years of salary, benefits, bonus and stock options plus immediate vesting of stock options
- Westmoreland Coal Co.
Business: Owns coal mines in Montana, North Dakota and Texas and power plant in North Carolina
Annual meeting: Slated for Thursday in Colorado Springs
CEO: Keith Alessi beginning May 1, 2007; Chris Seglem until May 1, 2007
2007 compensation: $1.1 million for Alessi, $610,707 for Seglem
2006 compensation: $1.3 million for Seglem
Change: Up 31.1 percent when 2007 compensation for both CEOs is compared with Seglem's 2006 compensation
Increases and declines: Alessi got $351,692 in salary, $422,031 in bonuses, $301,073 in stock options, $7,407 in reimbursement for using his personal aircraft and $2,885 in temporary living expenses.
Rationale: Alessi's bonus was "based upon successful execution of several priorities given by the board of directors that included reduction of overhead, improvement of financial reporting processes, consolidation of functions at the company's mining operations and completion of certain transactions that strengthened the company's core business."
Golden parachute: None for Alessi. Seglem has told the company he believes he should receive $3.8 million in severance pay under the company's executive severance policy, which the company said is "subject to different interpretations in regard to certain important terms." The company has set aside $1.8 million for his severance pay.
CONTACT THE WRITER: 636-0234 or wayneh@gazette.com
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