CEO’s pay increased as profits fall

Reynolds American Inc. paid its CEO, Daniel M. Delen, $8.65 million in fiscal 2012, about two per cent more than he was paid the previous year, according to a story by Michael Felberbaum for Associated Press based on AP’s analysis of a regulatory filing.

Delen received a base salary of $1 million and a $1.2 million performance-based bonus. He also received stock valued at about $6.2 million and other perks worth $203,312.

The pay package came in a year when the company saw its profit fall by 10 per cent to $1.27 billion and its revenue excluding excise taxes decline by three per cent to $8.3 billion.

Cigarette volumes fell by more than five per cent to 68.9 billion and the company’s US cigarette market retail share fell by 1.1 percentage points to 26.5 per cent.

Smokeless tobacco volumes grew by eight per cent and its share of the smokeless market stood at 32.4 per cent.