Freeport CEO Adkerson waives contract in return for stock award

Freeport McMoRan (FCX) is restructuring its employment agreement with CEO Richard Adkerson, tying his compensation to the stock's performance.

Adkerson will give up his salary, bonus, and rights to severance and change-of-control payments in exchange for restricted stock worth ~$36M; he will continue as CEO, president and vice chairman.

FCX says the agreement is another step of progress in strengthening its corporate governance practices, with further modifications ahead in its executive compensation program.

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Comments (5)
  • sinedo
    , contributor
    Comments (480) | Send Message
    Not a bad deal; I'd take it.
    Last year he made $4 Million in salary and $8.5 Million in stock options exercised. Next year, no salary, but $45 Million in dividends (36 mil. shares X $1.25 div), and his stock becomes a long term capital gain. Both stock gains and dividends taxed at only half of the cash rate. What a guy! ...."with further modifications ahead in its executive compensation program."
    You can count on an increased dividend, to be sure, when gold recovers. And they disclose it as if he is sacrificing for us. We are truly blessed. Merry Christmas to you too.
    23 Dec 2013, 03:57 PM Reply Like
  • stevco
    , contributor
    Comments (3) | Send Message
    I think you may have misread... the grant isn't 36 million shares, but approximately $36 million worth of shares - which is a grant of 1 million shares. So the dividend amount is "only" $1.25 million dollars. Significantly less... but I'd still take it!


    23 Dec 2013, 04:58 PM Reply Like
  • sinedo
    , contributor
    Comments (480) | Send Message
    My mistake; thanks for the correction. Even as cynical as I am about the way these guys pay themselves, that seemed extraordinarily obscene. Still, getting paid on the basis of stock performance could be a win-win for management and stockholders.
    23 Dec 2013, 11:52 PM Reply Like
    , contributor
    Comments (1149) | Send Message
    This should mean he will REALLY push to get better share price and Div for Shareholders !!! Might need to double down as I was thinking that might be a good sales point where stock is setting here. NOW I'm going to have to buy more knowing he will do what he needs to slip more $ into shareholders pockets vs company coffers...


    23 Dec 2013, 04:25 PM Reply Like
    , contributor
    Comments (4487) | Send Message
    Another Positive move for shareholders by this revamped company where recently their top executives invest $80+ million of their own money to buy FCX stock on the open market.


    Long FCX
    23 Dec 2013, 05:48 PM Reply Like
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