Interpublic Group chief executive Michael Roth's overall 2009 compensation declined nearly 40 percent to $6.38 million, according to a newly released proxy for the holding company's 2010 annual shareholders meeting on May 27.
Roth's total compensation includes stock, bonus and perquisites. That 2009 amount includes $1.4 million in base salary compared to $1.33 million in base salary in 2008. (Roth received a raise in April 2008; consequently his 2008 base salary does not reflect the entire amount of that increase while his 2009 base salary does.) In 2008, Roth was awarded $10.59 million in overall compensation, according to the proxy.
• John Dooner, who stepped down as McCann Worldgroup CEO on March 31, remained IPG's second-highest earner in 2009, receiving $2.80 million in total compensation, a nearly 43 percent decline from 2008 when he earned $4.89 million. Dooner, a former IPG CEO, had a base salary of $1.28 million in 2009.
Dooner, who keeps the title of executive chairman until the end of the year, will stay on until March 31, 2011, to help with the transition process of his successor Nick Brien, formerly CEO of IPG's Mediabrands unit. In retirement, Dooner, who turns 62 in August, will receive $2,514,500 for 15 years, or a total of $37,717,500. In the event of Dooner's death, those payouts go to his beneficiaries.
• Frank Mergenthaler, IPG CFO, received total compensation of $2.42 million in 2009, a decline of 31.5 percent from the $3.53 million in 2008. His base salary was $900,000 in 2009.
• Philippe Krakowsky, IPG evp, strategy and corporate relations earned $1.86 million in total compensation in 2009, a 28 percent decline from $2.58 million in 2008. Krakowsky's base salary was $670,000 in 2009.
• Timothy Sompolski, IPG evp, chief human resources officer, received total compensation of $1.28 million in 2009, a drop of almost 38 percent drop from $2.07 million in 2008. His base salary was $570,000 in 2009.
Aside from Roth, none of those top executives saw a change in their base salary from amounts earned in 2008.
On March 17, Dooner -- once one of IPG's largest shareholders -- sold 400,000 of his IPG shares for $8.51 each, or a total of $3.4 million. After that sale, he held 641,351 shares and about 900,000 exercisable options which is less than 1 percent of the company's outstanding shares.
Earlier this year, IPG dropped to fourth among holding companies after it reported a 13.4 percent decline in 2009 revenue. Profits in the 2009 fourth quarter skidded 37 percent. IPG shares are currently trading around $9 a share. The stock has a 52-week trading range of $4.57 to $9.81.
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