RICHMOND, Va. (AP) — Coal producer Alpha Natural Resources Inc. CEO Kevin Crutchfield received a pay package valued at more than $6.7 million in 2011, down 21 percent from 2010, according to an Associated Press analysis of a regulatory filing.
The pay package came in a year the Bristol, Va.-based company lost $677.4 million, compared with a $95.6 million profit in 2010. Revenue increased 81 percent to $7.1 billion with the Massey Energy Co. acquisition. Coal shipments rose more than 25 percent to 106.3 million tons in 2011, compared with 84.8 million tons in 2010.
The compensation deal was disclosed Tuesday in an annual proxy filing with the Securities and Exchange Commission.
Crutchfield's salary increased 18 percent to $1 million and the value of his stock options and awards fell 34 percent to $4.89 million. He also was given other compensation worth $273,902.
The 51-year-old also received a bonus of $528,000 for the company's 2011 safety performance. Alpha Natural Resources said 84 of its operations reported zero lost time accidents in 2011 and 65 operations had zero reportable injuries. In addition, former Massey mines saw various safety improvements and decreased enforcement actions from the federal Mine Safety and Health Administration.
In 2010, Crutchfield's compensation was valued at $8.45 million.
Alpha Natural Resources also announced that it will hold its annual meeting on May 17 in Abingdon, where shareholders will elect nine directors to its board.
The company has more than 180 mines and processing plants in Kentucky, Pennsylvania, Virginia, West Virginia and Wyoming. It employs about 14,000 people through its affiliates.
The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.
The value that a company assigned to an executive's stock and option awards for 2010 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.