Human Capital & Careers

Bear Stearns CFO Earned $12M in 2004

Plus more compensation data from the proxies of Progressive Corp., Coca-Cola, and Eli Lilly.
Stephen TaubMarch 10, 2005

Bear Stearns Cos. Inc. chief financial officer Samuel Molinaro Jr. earned more than $12 million last year, according to the company’s latest proxy. As has been a decades-long custom for top executives at the investment bank, for decades, his salary was just $200,000. However, Molinaro was also awarded a bonus of $5.7 million, restricted stock worth nearly $5 million, and other compensation, related to the company’s “capital accumulation plan,” valued at $1.3 million.

The CFOs at most other companies didn’t fare quite as well last year, but many of them have little to complain about.

Progressive Corp. vice president and chief financial officer W. Thomas Forrester took home more than $10.6 million last year, according to the insurer’s proxy filed earlier this week. Nearly $8.3 million was the result of realized gains from exercising stock options; Forrester also earned roughly $488,000 in salary, a $977,000 bonus, and about $905,000 in restricted stock.

Coca-Cola Co. executive vice president and chief financial officer Gary Fayard earned about $1.7 million in 2004, including a bonus of $838,500, up 29 percent from 2003. Unlike the two prior years, he also received nearly $375,000 in long-term incentive payments.

Eli Lilly and Co. executive vice president and chief financial officer Charles E. Golden took home nearly $1.8 million, including an $813,210 salary and a $549,000 bonus. For the first time in several years, he also received restricted stock, which was valued at $511,110.

According to the company’s proxy, all eligible global management received a performance-based award of Lilly stock, based on 2004 earnings-per-share growth. Most management employees received tradable shares, but under Lilly’s stock retention guidelines, executive officers received restricted stock that vests on February 1, 2006.