Summary
Altria Group, Inc. (MO) filed an 8-K on January 26, 2006, detailing compensation decisions made by its Compensation Committee on January 25, 2006. The key information for investors revolves around the awarding of restricted stock, new base salaries, and annual incentive awards for 2005 to named executive officers, excluding Roger K. Deromedi. Notably, the filing outlines the specific amounts of restricted stock granted, which vest over three years, and the approved annual incentive awards for 2005. Furthermore, the company established formulas for determining maximum award amounts for 2006 annual incentives and 2007 restricted stock awards, tied to adjusted net earnings and subject to IRS Section 162(m) tax deductibility provisions. The compensation for Roger K. Deromedi, a key executive, is managed through Kraft Foods Inc., and his awards are detailed separately.
Key Highlights
- 1Altria's Compensation Committee approved restricted stock grants, new base salaries, and 2005 annual incentive awards for key executive officers (excluding Roger K. Deromedi) on January 25, 2006.
- 2Restricted stock awards granted to executives like Louis C. Camilleri, Steven C. Parrish, Michael E. Szymanczyk, and Charles R. Wall vest over a three-year period.
- 3New base salaries for Messrs. Parrish, Szymanczyk, and Wall were approved, effective May 1, 2006.
- 4Significant 2005 annual incentive cash awards were paid to Messrs. Camilleri, Parrish, Szymanczyk, and Wall, with maximums tied to a performance incentive pool based on adjusted net earnings.
- 5Formulas for determining maximum award amounts for 2006 annual incentives and 2007 restricted stock awards were established, aiming for tax deductibility under Section 162(m) of the IRC.
- 6Roger K. Deromedi's compensation is handled by Kraft Foods Inc., which approved restricted stock and cash incentives for him, also with vesting and performance-based structures.
- 7The company plans to provide further executive compensation details in its 2006 Proxy Statement.