United Technologies Corp. Chief Executive George David, who led the company through a six-week strike at subsidiary Sikorsky Aircraft while recording strong overall profits, was awarded $23.3 million in total compensation last year, according to a company proxy.
David, chief executive since 1994 of the corporate parent of Sikorsky, jet engine manufacturer Pratt & Whitney, Hamilton Sundstrand, Otis elevator, Carrier and other businesses, received a base salary of nearly $1.8 million in 2006, $3.8 million in a cash bonus and $3 million from a long-term incentive plan.
He also received stock or option awards at the beginning of 2006 that had a value of $13.8 million when they were issued, according to a table in the proxy.
Also during the year, United Technologies paid $612,303 toward David’s private use of company aircraft, $20,901 in lease vehicle payments, and compensated him $194,099 for a flexible perquisite allowance. The company also contributed $83,882 toward his insurance premiums and another $3,603 of miscellaneous funds not broken out.
The Associated Press calculations of total pay include executives’ salary, bonus, incentives, 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.
David, 64, currently controls more than 1.8 million shares of United Technologies stock with the option to acquire more than 5.2 million additional shares, according to the proxy.
The company recorded strong earnings growth in 2006, despite a six-week strike at Sikorsky, a maker of military helicopters. Nearly 3,000 union members walked off the job in a dispute over a health care cost-sharing plan. The strike ended when the union narrowly agreed to terms similar to the company’s initial offer.
Company officials have reiterated earnings guidance of $4.05 to $4.20 per share in 2007. Analysts are expecting a 2007 profit of $4.16 per share.
