Baker Hughes 2010 Annual Report Download - page 37

2 0 11 P r o x y S t a t e m e n t 25
Summary Compensation Table
The following table sets forth the compensation earned by the PEO and other NEOs for services rendered to the Company and
its subsidiaries for the fiscal years ended December 31, 2010, 2009 and 2008. Bonuses are paid under the Company’s applicable
incentive compensation guidelines and are generally paid in the year following the year in which the bonus is earned.
Change in Pension
Value and
Non-Qualified
Non-Equity Deferred
Stock Option Incentive Plan Compensation(4) All Other
Name and Salary Bonus Awards(1) Awards(1) Compensation(2) (3) Earnings Compensation(5) Total
Principal Position Year ($) ($) ($) ($) ($) ($) ($) ($)
Chad C. Deaton – 2010 1,283,461 0 2,510,568 2,172,269 3,126,755 12,654 338,256(6) 9,443,963
Principal Executive Officer 2009 1,155,000 0 2,490,485 2,692,629 1,996,087 12,185 431,127 8,777,513
2008 1,142,308 0 3,151,769 2,123,830 6,383,399 11,200 332,834 13,145,340
Peter A. Ragauss – 2010 689,615 0 879,408 757,656 1,192,288 11,788 149,664(7) 3,680,420
Principal Financial Officer 2009 618,622 0 808,814 871,791 741,712 11,332 180,261 3,232,532
2008 562,800 0 1,120,526 617,983 2,091,601 10,300 121,470 4,524,680
Martin S. Craighead – 2010 711,539 0 1,073,256 926,024 (8) 1,254,413 13,188 154,966(9) 4,133,385
President and 2009 573,077 0 752,421 805,561 678,410 11,498 147,320 2,968,287
Chief Operating Officer 2008 450,000 0 836,005 479,350 732,264 10,600 90,074 2,598,293
Alan R. Crain – 2010 502,154 0 567,360 491,892(8) 836,334 13,834 115,221(10) 2,526,795
Senior Vice President 2009 473,000 0 554,379 599,342 494,353 13,345 140,716 2,275,135
and General Counsel 2008 469,000 0 840,969 484,685 1,503,595 12,400 112,152 3,422,801
John A. O’Donnell – 2010 424,154 100,000 359,328 545,712(8) 479,872 13,799 93,040(11) 2,015,905
Vice President 2009 374,173 0 316,891 340,767 291,335 13,340 107,920 1,444,426
and President, 2008 329,192 0 533,531 163,266 611,743 12,418 78,901 1,729,051
Western Hemisphere
Operations
(1) Restricted stock awards were granted on January 19, 2010. Stock option awards were granted on January 19, 2010 at an exercise price of $47.28 and on July 21,
2010 at an exercise price of $49.17. The amounts included in the Stock Awards and Option Awards columns represent the aggregate grant date fair value of the
awards made to NEOs computed in accordance with FASB ASC Topic 718. The value ultimately realized by the executive upon the actual vesting of the award(s) or
the exercise of the stock option(s) may or may not be equal to the FASB ASC Topic 718 determined value. For a discussion of valuation assumptions, see “Note 5 –
Stock-Based Compensation” of the Notes to Consolidated Financial Statements included in our annual report under Item 8 of the Form 10-K for the year ended
December 31, 2010.
(2) The amounts for the 2010 fiscal year include annual performance bonuses earned under the Annual Incentive Compensation Plan by Messrs. Deaton, Ragauss,
Craighead, Crain, and O’Donnell in the amounts of $988,753, $397,772, $410,893, $241,376 and $163,099, respectively, as well as cash-based awards under the
2002 D&O Plan to Messrs. Deaton, Ragauss, Craighead, Crain, and O’Donnell in the amounts of $915,000, $380,000, $400,000, $320,000 and $150,000, respec-
tively. In addition, these amounts include the payouts earned under the performance units granted in 2009 and 2010 to Messrs. Deaton, Ragauss, Craighead, Crain,
and O’Donnell in the amounts of $606,667, $212,696, $258,619, $137,769, and $87,012, respectively, for the 2010 grant and $616,335, $201,820, $184,901,
$137,189, and $79,761, respectively, for the 2009 grant. These amounts are not payable until the close of the three-year performance period in March of 2012
and March 2013 for the performance units granted in 2009 and 2010, respectively, and are generally subject to the NEO’s continued employment through the
end of the three-year performance periods.
(3) Amounts for fiscal year 2009 have been adjusted to include the payout earned for the performance units granted in 2009 to Messrs. Deaton, Ragauss, Craighead,
Crain, and O’Donnell in the amounts of $478,125, $156,563, $143,438, $106,425, and $61,875, respectively. These amounts are not payable until the close of the
three-year performance period in March of 2012.
(4) This amount represents the change in value under the Baker Hughes Incorporated Pension Plan. There are no deferred compensation earnings reported in this column
because the Company’s non-qualified deferred compensation plans do not provide above-market or preferential earnings.
(5) Amounts for fiscal years 2009 and 2008 have been adjusted to reflect a change in the amounts disclosed for payments made by the Company on behalf of the
NEOs for life insurance premiums. The Company paid life insurance premiums on behalf of Messrs. Deaton, Ragauss, Craighead, Crain, and O’Donnell in the amounts
of $4,602, $2,263, $1,793, $1,886, and $1,327, respectively, for 2009 and of $4,382, $2,175, $1,793, $1,813, and $1,263, respectively, for 2008.
(6) Amount for 2010 includes (i) $221,583 that the Company contributed to Mr. Deaton’s SRP account, (ii) an annual perquisite allowance of $25,000, (iii) $68,603 in
dividends earned on holding of Company common stock, (iv) $3,160 in life insurance premiums paid by the Company on behalf of Mr. Deaton and (v) $19,910 in
employer matching and employer base contributions that the Company contributed to the Thrift Plan on behalf of Mr. Deaton.
(7) Amount for 2010 includes (i) $80,562 that the Company contributed to Mr. Ragauss’ SRP account, (ii) an annual perquisite allowance of $20,000, (iii) $25,274 in
dividends earned on holdings of Company common stock, (iv) $1,778 in life insurance premiums paid by the Company on behalf of Mr. Ragauss and (v) $22,050
in employer matching and employer base contributions that the Company contributed to the Thrift Plan on behalf of Mr. Ragauss.
(8) Because Messrs. Crain, Craighead and O’Donnell are eligible for retirement based upon their ages and years of service with the Company and, accordingly, their
options will automatically vest upon retirement, the Company expenses the full value of their options upon grant for purposes of FASB ASC Topic 718.
(9) Amount for 2010 includes (i) $88,959 that the Company contributed to Mr. Craighead’s SRP account, (ii) an annual perquisite allowance of $20,000, (iii) $24,104
in dividends earned on holdings of Company common stock, (iv) $1,778 in life insurance premiums paid by the Company on behalf of Mr. Craighead and (v) $20,125
in employer matching and employer base contributions that the Company contributed to the Thrift Plan on behalf of Mr. Craighead.
(10) Amount for 2010 includes (i) $59,532 that the Company contributed to Mr. Crain’s SRP account, (ii) an annual perquisite allowance of $20,000, (iii) $15,966 in
dividends earned on holdings of Company common stock, (iv) $1,294 in life insurance premiums paid by the Company on behalf of Mr. Crain and (v) $18,429
in employer matching and employer base contributions that the Company contributed to the Thrift Plan on behalf of Mr. Crain.
(11) Amount for 2010 includes (i) $41,536 that the Company contributed to Mr. O’Donnell’s SRP account, (ii) an annual perquisite allowance of $20,000, (iii) $9,840 in
dividends earned on holdings of Company common stock, (iv) $1,094 in life insurance premiums paid by the Company on behalf of Mr. O’Donnell and (v) $20,570
in employer matching and employer base contributions that the Company contributed to the Thrift Plan on behalf of Mr. O’Donnell.