Human Capital & Careers

2000 CFO Pay: Oil Company CFOs Hit Paydirt

High oil prices are kind to Phillips Petroleum's finance chiefs, while Chiron's CFO gets gold-plated medicine. More.
Michelle GabrielleMarch 29, 2001
  • A pair of CFOs at Phillips Petroleum Co. earned a combined $5 million in 2000, according to the company’s recently released proxy.

In 2000, T.C. Morris, former SVP and CFO of the Bartlesville, Okla.-based oil company, took home $441,500 in salary, $977,209 in bonus, $16,619 in other compensation, and $82,023 in exercised options. He also received a long-term payout award of $897,867. Total Compensation: $2,415,218.

The year before, Morris earned $404,997 in salary, $374,368 in bonus, and $14,580 in other compensation. He also received another $187,769 in a long-term payout award.

Morris will retire on April 30, and his successor, J.A. Carrig, who took over on Feb. 1, received $294,082 in salary, $677,273 in bonus, $16,415 in other compensation, and $121,091 in exercised options. In addition, Carrig received $1,000,012 in restricted stock awards and $283,985 as a long-term payout. Total Compensation: $2,392,858.

In 1999, Carrig earned $253,017 in salary, $213,806 in bonus, $13,393 in other compensation, and $78,103 in a long-term payout.

Some $300,000 of Carrig’s 2000 bonus and $400,000 of Morris’ stem from payments related to two joint ventures, Duke Energy Field Services joint venture and Chevron Phillips Chemical Co. and the acquisition of ARCO Alaskan.

For 2000, Phillips’ operating income, excluding special items, was $1.9 billion, as compared to $548 million for 1999. Total revenue was $21.2 billion in 2000, compared to $13.9 billion in 1999. In 2000, net income tripled to $1.9 billion from $609 million in 1999.

  • Acme United Corp.’s VP and CFO Ronald P. Davanzo received more than $150,000 last year, according to the Fairfield, Conn.-based recently released proxy.

In 2000, Davanzo earned $128,384 in salary and $25,000 in bonus at the supplier of cutting instruments, measuring devices, and safety and related products for consumers. Total Compensation: $153,384.

In the year before, Davanzo earned $109,621 in salary and $10,000 in bonus.

On March 2, the company reported income from continuing operations for the year 2000 of $1.1 million. Earnings per share from continuing operations for 2000 were the highest since 1991. Net income was $1.1 million in 2000 compared to $2.2 million in 1999. Net income in 1999 included a gain on the sale of the medical division and income from discontinued operations of $2.3 million. Net sales in 2000 were $34.4 million versus $35.9 million in 1999, a decline of 4 percent.

EVP and CFO, R. Lee Barclay is about to pass along the Midas touch to William M. Guzik, and in his last year at the company he earned a total Compensation of $402,461.

According to the recently released proxy from the Itasca, Ill.-based chain of muffler and auto-repair shops, Barclay took home $267,000 in salary, $119,441 in bonus, and $16,020 in other compensation.

In 1999, Barclay received $259,000 in salary, $101,521 in bonus, and $30,570 in other compensation at the automotive services provider.

On Feb. 15, Midas announced that Guzik will become SVP and CFO on May 1, upon the retirement of Barclay. Guzik, 41, joined Midas in 1999, as VP and controller. Prior to joining Midas, Guzik was CFO of Delray Farms LLC, a Chicago-based “fresh market” retail grocery store, from 1995 until 1999. Prior to that, he was CFO and secretary of JG Industries, Inc., parent of Chicago’s Goldblatt’s Department Stores, and spent 11 years in the audit practice of PricewaterhouseCoopers in Chicago. Barclay, 58, joined Midas in 1980, as VP and controller. He has been CFO of the company since 1982, and EVP since 1989.

Barclay’s retirement package includes a monthly consulting fee of $22,250 for one year. Barclay also agreed to cancel his restricted stock in return for the company’s forgiveness of a loan associated with the restricted stock.

Midas had a tough year in 2000. Sales slipped to $346.2 million from $355.5 million in 1999.

  • Biotech Chiron Corp. reported in its recently released proxy that its VP and CFO James R. Sulat, took home nearly $700,000 last year.

In 2000, Sulat earned $336,000 in salary, $321,154 in bonus, and $23,520 in other compensation at the Emeryville, Calif.-based company. Sulat’s “other compensation” includes company contributions of $16,720 under the company’s supplemental employee retirement plan.

On January 30, 2000, Chiron reported pro-forma income from continuing operations of $170 million for 2000. This represents an increase of 44 percent over the $117 million earned in 1999.

In addition, total pro-forma revenue was $938 million in 2000, compared to $763 million in 1999.