Morningstar’s Mansueto takes a 6% pay cut

Posted April 8, 2010 at 11:44 a.m.

By Becky Yerak | Joe Mansueto, the chairman and chief executive of Morningstar Inc., took
a 6 percent pay cut in 2009, taking home only $100,020 in total
compensation.

But he does own 25.6 million shares, or 52 percent of the Chicago-based
investment research provider. That’s worth $1.2 billion based on the
$46.94 trading price mid-Thursday afternoon. Morningstar’s 52-week trading range is $31 to $54.75.


Mansueto’s salary has been fixed at $100,000, the proxy shows. His “other” compensation fell from $6,145 to $20.

“Other” consists of payments toward basic life and accidental death and dismemberment insurance.

Mansueto, 53, founded Morningstar in 1984 and took it public in 2005.

As principal shareholder, Mansueto believes his compensation as CEO should be realized mostly through appreciation in the company’s stock, so he doesn’t participate in Morningstar’s equity or cash-based incentive programs, the proxy said.

Also, his annual salary has been fixed at $100,000 since 2000 and will likely remain at that level for the foreseeable future, the proxy said.

The proxy notes that Morningstar doesn’t offer perquisites to officers, such as permanent lodging or defraying the cost of personal entertainment or family travel, nor does it own or lease aircraft.

Mansueto has both a bachelor’s and a master’s in business administration from the University of Chicago. The proxy mentioned that Mansueto is making a charitable contribution of $25 million to support the construction of a new library at the University of Chicago. Steve Kaplan, a University of Chicago business professor, also sits on Morningstar’s board.

 

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