By Bob Tita
Danaher Corp. (DHR) Chief Executive H. Lawrence Culp's total compensation in 2011 rose 27% from 2010 on a larger allocation of stock and options.
Culp's base salary, nonequity bonus, compensation for executive perks and awards of restricted stock shares and options totaled $21.7 million, compared with $17.03 million in 2010, according to a regulatory filing Friday with the U.S. Securities and Exchange Commission.
The cash portion of his pay rose to 6.3% to $5.87 million because of an 8% increase, worth $350,000, in his nonequity bonus based on the performance of the diversified industrial company. His base salary was unchanged from 2010 at $1.12 million.
Danaher's profit in 2011 rose 21% to from 2010 to $2.17 billion, or $3.11 a share. Revenue climbed 28% last year to $16.1 billion. The Washington, D.C.-based company's primary business segments include testing and measurement instruments; medical and dental equipment; and industrial technologies, such as bar-code identification equipment and factory process control systems.
Culp received stock and options worth $15 million on the day they were granted, a 37% increase from the stock and options granted to him in 2010. Culp was awarded 387,080 stock options with an exercise price of $49.59. He also received restricted stock shares worth $7.68 million on the day they were granted. Culp last year exercised options for 400,000 shares of Danaher stock that netted him $11.1 million when the shares were sold at Danaher's market price. Culp also received 28,000 shares of restricted stock worth $1.54 million when the shares vested.
Danaher awarded Culp $722,068 for executive perks, contributions to his 401(k) retirement account and other expenses. Of this amount, $17,464 went to his 401(k); $396,393 covered costs for his personal use of the company's aircraft; and $56,711 went toward expenses for tax-preparation, parking and tickets to entertainment events.
Culp, 49 years old, joined Danaher 22 years ago and became chief executive in 2001. In recent years, he has realigned Danaher's business portfolio by bailing out of highly cyclical companies with large bases of fixed assets in plants, machinery and materials and investing in technology companies where growth is largely driven by research and product-development activities. In 2011, Danaher acquired medical-test maker Beckman Coulter Inc. for $5.87 billion.
Danaher's stock Friday was recently trading up 0.16% at $53.04 a share.
-By Bob Tita, Dow Jones Newswires; 312-750-4129; [email protected]