Stanley Black & Decker executives encountered major pay cuts this year after shareholders expressed their aversion to the pay packages for top employees at the New Britain manufacturing conglomerate.
But that didn't keep three Stanley Black & Decker leaders from making the Hartford Business Journal's list of the 25 highest paid executives at public companies in Connecticut.
The chief executive officer and executive chairman of Stanley Black & Decker ranked first and second last year in Hartford Business Journal's list of highest paid executives in Connecticut, but fell considerably after shareholders intervened in a 'say on pay' vote.
John Lundgren, president and CEO of Stanley Black & Decker, dropped to 12th place this year after ranking first on last year's list. With a total compensation of $13,727,871, he experienced a 58 percent decrease in pay, as his compensation last year was $32,730,259.
Nolan Archibald, executive chairman of Stanley Black & Decker, dropped to No. 14 this year after placing second last year. His total compensation dropped from $28,236,565 to $12,310,466, experiencing a 56 percent decrease from last year.
In addition to Lundgren and Archibald, James Loree, executive vice president and chief operating officer of Stanley Black & Decker, dropped 14 spots this year — to 23rd — with a 62 percent decrease with a compensation package to $7,332,566.
David Cadden, professor of management at Quinnipiac University, said other companies may soon find themselves in the shoes of Stanley Black & Decker's management team.
"For the last 30 years, the nation has seen a significant increase in executive compensation packages," Cadden said. "In the future, I predict that boards of directors will begin making compensation packages more congruent with the performance of executives, measured by stock performance and increases in revenue and profit."
First place on this year's list is Louis Chenevert, chairman and CEO of United Technologies Corp. in Hartford. His total compensation rose to $27,671,331 from last year's $22,086,161, which had placed him fifth. An amount of $7,932,325 came from stock awards, along with $7,063,760 in option awards.
Chenevert was elected CEO of UTC in April 2008, succeeding George David.
Ian Read, president and CEO of pharmaceutical company Pfizer, ranked second this year with a 2011 total compensation package of $25,013,348. Read's pay increased 44 percent from his last year's compensation of $17,396,112. He received stock valued at $5,684,218 in addition to his salary of $1,700,000.
Read began his career with Pfizer in 1978 as an operational auditor. He was vice president before CEO Jeffrey Kindler resigned, announcing Read as his replacement in December 2010.
General Electric employees made up 20 percent of the list this year. All five employees appeared on the list last year, however, each gained at least three spots this year.
Jeffrey Immelt, chairman and CEO of General Electric, came in third overall with a total compensation of $21,581,228. He continues to lead the list in terms of straight salary with $3.3 million this year.
John Rice, vice chairman of GE, came in fourth with $20,579,141 total compensation, experiencing a 44 percent increase to tie with Read for second biggest advance.
Leonard Bell, CEO and treasurer of Alexion Pharmaceuticals in Cheshire, experienced the biggest advance with a 73 percent increase in compensation. Bell rose to 13th from No. 23, with a total compensation of $13,030,056, and a leading $7,170,366 from option awards.
Five executives from last year's list failed to appear on this year's list. Jeffrey Kindler of Pfizer retired in December 2010, Ronald Williams of Aetna retired in April 2011, and Ari Bousbib of UTC left the company in August 2010. Joseph Zubretsky of Aetna and Brian MacLean of Travelers didn't make the list this year.
Of the top 25 executives, 20 received stock awards, 21 received stock options, and 19 received payments under non-equity incentive plans in their total compensation packages.
Information for the 2011 list was gathered from the company proxy statements by Sara Reynolds, former research director for the Hartford Business Journal.