Baxter CEO’s compensation falls 20% in 2010

By Reuters
Posted March 8 at 3:58 p.m.

Baxter International Inc. Chief Executive Robert L. Parkinson Jr. received compensation valued at $11.5 million in 2010, down 20 percent from the prior year amid a sharp reduction in his annual bonus and a tumultuous year for the medical-products company.

The chief executive also gained $13.9 million as previously issued stock awards vested, according to a proxy filing with the Securities and Exchange Commission.

Baxter shares slipped 14 percent last year after getting hit hard in the spring when the company endured unexpected turbulence in the market for plasma-based medical products. The company also has dealt with some product-quality issues including a large-scale recall of problem infusion pumps and an issue with contaminated dialysis solution overseas.

The company also felt some impacts from the economic downturn. It noted in the filing that it missed adjusted per-share earnings and sales targets last year after exceeding them in the prior two years. But it also said it “delivered solid financial results” and executed key strategies in the face of big challenges. Baxter shares are up about 5 percent so far this year.

Parkinson, 60, received a $1 million bonus last year, down from $2.5 million the prior year. His base salary increased slightly to $1.4 million, while the value of both stock and option awards at the time they were granted declined modestly.

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