Paccar CEO received $9.2 million 2007 pay, up 33%

Mark C. Pigott

The Associated Press

3/5/2008

NEW YORK — The chairman and chief executive of Paccar Inc. received compensation valued at $9.2 million in fiscal 2007, a 33 percent increase from the previous year, according to a regulatory filing Feb. 29.

The Bellevue, Wash.-based commercial trucks and parts maker awarded Mark C. Pigott a base salary of $1.3 million, a 1.3 percent raise from 2006, and a cash incentive bonus of $935,940.

Pigott also received stock and option awards valued at $4.9 million on the dates they were granted.

Additionally, Paccar awarded Pigott $11,250 in all other compensation, in the form of contributions to a 401(k) plan.

Pigott's total pay package in 2006 was valued at $6.9 million, according to a calculation by The Associated Press.

The AP's total pay calculations include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.

According to the filing, an executive's base salary is fixed and not related to company performance. Paccar said awards are measured by a scale and can range from zero to 70 percent depending if certain goals are met.

Paccar's 2007 profit fell to $1.23 billion, or $3.29 per share, from $1.5 billion, or $3.97 per share, in 2006. Sales slipped 18 percent to $14.03 billion.