Kellogg's former CEO, David Mackay, received a pay package valued at $6 million in 2010, his final year at the helm of the world's largest cereal maker, according to a document the company filed Friday with the Securities and Exchange Commission.
That's 23 percent less than the $7.8 million Mackay got in 2009.
Mackay retired Jan. 1 at the end of the company's fiscal year. John Bryant, the company's former chief operating officer, took over as CEO. Mackay, also Kellogg's president and a member of its board, will assist the company through March to aid the transition.
Kellogg gave Mackay a $1.2 million salary in 2010, roughly the same as the prior year. The value of his stock awards increased 35 percent to $1.7 million. And the value of the stock options he received rose 27 percent to $2.9 million.
The lack of a performance-based cash bonus accounted for most of the drop in Mackay's pay package for the year. Kellogg did not grant any of its executives a performance bonus during 2010. That change cut Mackay's pay by nearly $2.8 million.
Kellogg said 2010 was one of its most disappointing years. The company was on a strong growth trajectory until 2009, when the recession and rising ingredient costs started to take a toll. Things got worse in 2010. Cereal sales fell, competition increased and the company conducted one of the largest food recalls in its history.
Kellogg reported that its full-year net income rose nearly 3 percent to $1.25 billion for 2010, while its revenue slid a bit more than 1 percent to $12.4 billion.
The value of Mackay's other pay, perks that included financial planning and personal use of the company aircraft, fell 8 percent to $334,924 in 2010.
The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonus, 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 that companies list in the summary compensation table of proxy statements filed with regulators.