Louis Chênevert, who resigned as chairman and CEO of United Technologies in November, earned $27.1 million in compensation last year, but also departed with a pension, stock and options awards worth $184.4 million, UTC said in a U.S. Securities & Exchange Commission filing.
Options comprised nearly $127 million of that total, based on a Dec. 31 closing price of $115 per share.
UTC said it did not pay Chênevert any cash severance benefit in connection with his retirement, which was official Jan. 3. UTC is paying for his medical insurance for two years.
The former CEO’s official 2014 compensation was $27.1 million, up from $20.3 million in 2013. The 34 percent increase was mostly the result of an increase in pension value that was triggered by his retirement status.
Barring the change in pension value, Chênevert’s official compensation package declined by $2.3 million, or 13 percent, to $15.9 million.
Chênevert was not eligible for a bonus for 2014, compared to a $3.4 million received in 2013, and his non-equity incentive compensation fell from $697,000 to $189,000.
The $13.2 million in options and stock awards granted during the year represented an increase of approximately $57,000 in 2013.
The 2014 compensation figures do not include the value of previously granted stock awards and options that vested or were exercised during the year. Chênevert realized $16 million in value from options and $13.7 million from stock.
Hayes sees pay bump
Meanwhile, Chênevert’s successor Gregory Hayes, earned $7.2 million in 2014, up from $6.9 million the year before. Hayes was chief financial officer and senior vice president until late November, when Chênevert resigned.
In addition to that total, $7 million of Hayes’ options and stock awards vested in 2014.
Upon Hayes’ promotion to CEO, UTC’s board of directors increased his base salary from $920,000 to $1.3 million and his potential bonus from 100 percent of his base salary to 165 percent.
