Raytheon CEO gets big bump in compensation
Raytheon Co. chief executive Thomas Kennedy received $20.4 million in total compensation last year, a 49 percent jump from 2014.
The head of the Waltham-based defense contracting giant took home $1.2 million in salary and $8.1 million in stock awards, according to an annual proxy filing with securities regulators. He also received a bigger cash bonus, at $3 million.
The largest bump in Kennedy’s pay was in the value of his pension and retirement plans, which nearly tripled, to $7.6 million.
Kennedy also received $406,917 in perks, including personal use of Raytheon aircraft. In addition, he was provided a car allowance, driving services, financial planning services, home security, and had expenses covered related to his spouse’s attendance at business events at the company’s request.
The increase in Kennedy’s pay followed a year in which the company’s net sales rose 2 percent, to $23.2 billion and earnings per share from continuing operations declined 3 percent, to $6.75.
The board, in the securities filing, said Kennedy had met a number of his goals, including boosting Raytheon’s stock price and bringing in new business from Saudi Arabia, Korea, and Qatar.
The board’s 11 directors, not counting Kennedy, received a combined $3 million in compensation last year. The outside directors include current or former executives of Massachusetts companies such as State Street Corp. and EMC Corp., as well as former military officials. Part of their pay came in the form of large stock awards, aimed at aligning their interests with those of regular shareholders.
The company has forecasted revenue growth of 3 to 5 percent for 2016. Raytheon’s first-quarter earnings are scheduled to be released Thursday morning.