Eddy Elfenbein submits: The Washington Post reports that H. Lawrence Culp Jr., Danaher’s CEO, made $46.2 million last year. Interestingly, this is in the ballpark of what Lloyd Blankfein and Stanley O'Neal made, but because Danaher tends to stay out of the spotlight, Culp’s pay isn’t attracting much attention. (Plus, the firm is based on Congress’ home turf.)
Like many executive pay packages, most of Culp’s pay is in the form of stock options. The Post notes that at the stock’s present value, Culp’s options are worth more than $100 million. Of course, let’s look at the results:
Last year, Danaher’s profit rose 25 percent, to $1.1 billion from $898 million in 2005. Revenue grew 20 percent to $9.6 billion. Culp said recently that his goal is to reach $25 billion in sales by 2012.
Since taking over in May 2001, Culp has bought more than 30 companies and doubled Danaher's market value. His purchases, which include dental products company Sybron Dental Specialties for about $2 billion, have expanded Danaher's presence in the medical and dental industries.
No one is complaining about his pay, and no one should.
DHR 1-yr chart