Baker Hughes 2007 Annual Report Download - page 41

2007 Proxy Statement 23
EXECUTIVE COMPENSATION
SUMMARY COMPENSATION
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, 2007 and 2006. 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.
Summary Compensation Table
Change in Pension
Value and
Non-Qualified
Non-Equity Deferred
Stock Incentive Plan Compensation All Other
Name and Principal Bonus Awards(1) Option Compensation Earnings Compensation Total
Position Year Salary ($) ($) ($) Awards (1) ($) ($) ($) ($)
Chad C. Deaton – 2007 $ 1,082,692 $ 0 $ 2,541,359 $ 2,163,403 $ 1,092,717(2) $ 10,400 $ 399,200(3) $ 7,289,771
Principal Executive Officer 2006 $ 1,001,923 $ 0 $ 3,274,091 $ 1,364,590 $ 1,915,677 $ 9,600 $ 438,318 (3) $ 8,004,199
Peter A. Ragauss – 2007 $ 541,154 $ 0 $ 863,710 $ 679,536 $ 451,044(2) $ 8,500 $ 136,200 (4) $ 2,680,144
Principal Financial Officer 2006 $ 339,231 $ 0 $ 461,029 $ 324,746 $ 652,470 $ 7,000 $ 200,600(4) $ 1,985,076
James R. Clark – 2007 $ 683,461 $ 0 $ 1,373,434 $ 679,168 (6) $ 390,229 $ 11,700 $ 237,500 (7) $ 3,375,492
President and Chief 2006 $ 645,000 $ 51,600(5) $ 1,540,383 $ 1,375,192(6) $ 1,057,528 $ 10,200 $ 273,775(7) $ 4,953,678
Operating Officer
Alan R. Crain – 2007 $ 448,077 $ 0 $ 500,938 $ 724,683 $ 372,282(2) $ 11,700 $ 126,800(9) $ 2,184,480
Senior Vice President & 2006 $ 425,000 $ 25,500(8) $ 546,177 $ 589,152 $ 516,038 $ 10,200 $ 148,033 (9) $ 2,260,150
General Counsel
David H. Barr – 2007 $ 414,135 $ 0 $ 553,611 $ 450,055 (6) $ 277,341(2) $ 11,700 $ 112,300 (10) $ 1,819,142
Vice President and Group 2006 $ 389,423 $ 0 $ 636,527 $ 411,758(6) $ 443,396 $ 10,700 $ 137,214(10) $ 2,029,018
President, Completion
and Production
(1) Restricted stock awards were made on January 25, 2006 and valued at $75.06 per share except for Mr. Ragauss who received a grant on April 26, 2006 at a value
of $75.93 per share. Stock option grants were made on January 25, 2006 at an exercise price of $75.06 and a SFAS 123(R) value of $23.78, except for Mr. Ragauss
who received a grant on April 26, 2006 at an exercise price of $75.93 and SFAS 123(R) value of $25.00. Restricted stock awards were made on January 24, 2007 and
valued $68.54 per share. Stock option grants were made on January 24, 2007 at an exercise price $68.54 and a SFAS 123(R) value of $22.40 per share. Stock option
grants were also made on July 27, 2006 and July 25, 2007 at an exercise price of $80.73 and $82.28, respectively, and a SFAS 123(R) value of $28.54 and $26.18 per
share, respectively. For both stock and stock option grants, the value shown is what is also included in the Company’s financial statements per SFAS 123(R). See the
Company’s Annual Report for the years ended December 31, 2006 and 2007 for a complete description of the SFAS 123(R) valuation.
(2) These amounts include annual performance bonuses earned under the Annual Incentive Plan. In addition, these amounts include cash based awards under the 2002
D&O Plan to Messrs. Deaton, Ragauss, Crain and Barr in the amount of $320,000, $200,000, $150,000 and $100,000, respectively.
(3) Amount for 2007 includes (i) $382,368 that the Company contributed to Mr. Deaton’s SRP account, (ii) an annual perquisite allowance of $25,000, (iii) $59,965 in divi-
dends earned on holdings of Company common stock and (iv) $20,382 in life insurance premiums paid by the Company on behalf of Mr. Deaton. Amount for 2006
includes (i) $306,239 that the Company contributed to Mr. Deaton’s SRP account, (ii) an annual perquisite allowance of $25,000, (iii) $69,833 in dividends earned on
holdings of Company common stock and (iv) $10,799 in life insurance premiums paid by the Company on behalf of Mr. Deaton.
(4) Amount for 2007 includes (i) $118,315 that the Company contributed to Mr. Ragauss’ SRP account, (ii) an annual perquisite allowance of $20,000 and (iii) $20,697
in dividends earned on holdings of Company common stock. Amount in 2006 includes (i) $143,750 in relocation costs associated with Mr. Ragauss’ hiring in 2006,
(ii) $19,654 that the Company contributed to Mr. Ragauss’ SRP account, (iii) an annual perquisite allowance of $20,000, which on a pro rata basis amounted to
$13,333 for 2006 and (iv) $13,127 in dividends earned on holdings of Company common stock.
(5) Mr. Clark’s base salary remained constant for 2006; however, he received a payment of $51,600 in lieu of a salary increase.
(6) Because Messrs. Clark and Barr are eligible for retirement based upon their age and years of service with the Company and their options will automatically vest upon
retirement, the Company expenses the full value of their options upon grant for purposes of SFAS 123(R).
(7) Amount for 2007 includes (i) $218,003 that the Company contributed to Mr. Clark’s SRP account, (ii) an annual perquisite allowance of $20,000, (iii) $32,403 in divi-
dends earned on holdings of Company common stock and (iv) $17,280 in life insurance premiums paid by the Company on behalf of Mr. Clark. Amount for 2006
includes (i) $191,444 that the Company contributed to Mr. Clark’s SRP account, (ii) an annual perquisite allowance of $20,000, (iii) $31,321 in dividends earned on
holdings of Company common stock and (iv) $16,641 in life insurance premiums paid by the Company on behalf of Mr. Clark.
(8) Mr. Crain’s base salary remained constant for 2006, however he received a payment of $25,500 in lieu of a salary increase.
(9) Amount for 2007 includes (i) $110,495 that the Company contributed to Mr. Crain’s SRP account, (ii) an annual perquisite allowance of $20,000, (iii) $19,750 in divi-
dends earned on holdings of Company common stock and (iv) $11,546 in life insurance premiums paid by the Company on behalf of Mr. Crain. Amount for 2006
includes (i) $89,918 that the Company contributed to Mr. Crain’s SRP account, (ii) an annual perquisite allowance of $20,000, (iii) $10,253 in dividends earned on
holdings of Company common stock and (iv) $10,965 in life insurance premiums paid by the Company on behalf of Mr. Crain.
(10) Amount for 2007 includes (i) $96,698 that the Company contributed to Mr. Barr’s SRP account, (ii) an annual perquisite allowance of $20,000, (iii) $16,934 in divi-
dends earned on holdings of Company common stock and (iv) $10,687 in life insurance premiums paid by the Company on behalf of Mr. Barr. Amount for 2006
includes (i) $74,992 that the Company contributed to Mr. Barr’s SRP account, (ii) an annual perquisite allowance of $20,000, (iii) $14,052 in dividends earned on
holdings of Company common stock and (iv) $10,043 in life insurance premiums paid by the Company on behalf of Mr. Barr.