Principal Chief Financial Officer is $ 4.8 million in 2008

 

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DES MOINES, Iowa_Principal Financial Group Inc. Chief Executive Larry Zimpleman received compensation valued at more than $ 4.8 million for 2008, according to an analysis of the Associated Press figures published in a regulatory filing.

Zimpleman, 57, became CEO in May 2008 after serving as chief operating officer since June 2006. It also retains the title of chairman of Des Moines retirement, insurance and financial services.

His pay includes a salary of $ 737,475, an increase of 18.9 percent compared to 2007, and $ 54,719 in other compensation, including financial planning and corporate contribution to a 401 (k ) retirement.

He also received stock options and stock valued at $ 4 million when they were granted in February 2008. The exercise price on the 3.3 million in options is $ 60.10, while the stock fell to around $ 12.

Zimpleman received no bonus in 2008 or 2007. He was among a group of senior refuse a performance-based bonus. In 2007, he received $ 682,389 incentive-based pay.

Zimpleman a $ 1 million of shares acquired in 2008, but deferred settlement until 2013 or termination of employment, whichever comes first.

Associated Press The compensation formula is designed to isolate the value of the company placed on the executive board of the total remuneration during the last fiscal year. It includes salary, bonus, performance-related bonuses, benefits, above market returns on deferred compensation and the estimated value of stock options and awards granted during the year.


The calculations do not 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, which reflect the importance of taking charge of the accounting of executive compensation last year.

Key profits after payment of preferred dividends $ 425.1 million, or $ 1.63 per share for 2008 compared to $ 827.3 million, or $ 3.09 per share, the year before.

Operating income fell to $ 942.7 million, or $ 3.61 per share, on revenues of $ 10.73 billion from a profit of $ 1.05 billion, or $ 3.93 per share, a year earlier on sales of $ 11.22 billion.

For years, the principal reported the capital investment made and the loan losses of $ 505.3 million.

Assets under management fell 21 percent in 2008 to $ 128.2 billion at December 31.

Shares rose $ 2.16, or 21 percent, to close at $ 12.31 Wednesday. They have traded between $ 5.41 and $ 59 in the past 52 weeks.

Former CEO Barry Griswell, 60, left the position of CEO in May 1, 2008, and has left the company as an employee on December 31. He remains chairman of the board, however.

He saw his total compensation fall by 13.5 percent to $ 7.5 million from $ 8.6 million in 2007. Most of the decline was because he refused based on performance incentives in the previous year, totaled $ 1.3 million.

Griswell won $ 1 million in salary and stock options and restricted stock valued at $ 6.2 million when they were granted. Other allowances, including the use of corporate jet and corporate contributions to a 401 (k), paid him 283,596 dollars more.

Griswell also took in $ 3.5 million in stock shares acquired during 2008.

Executives saw a 10 per cent of base salary March 28 because of current economic conditions, the company said.