Hasbro CEO 2010 pay package valued at $23M

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The Associated Press have published the following article regarding the pay packet of Hasbro CEO  Brian Goldner.

\"NEW YORK â€" Brian Goldner, the CEO of the nation\'s No.2 toy maker, Hasbro Inc., received a pay package valued at $23 million for 2010, nearly triple his pay package in 2009, due to hefty stock and option awards designed to keep him with the company, according to a regulatory filing.

Most of the package came in the form of stock grants and stock options worth a total of $18.8 million when they were granted.

Goldner\'s performance-based bonus edged down 4 percent, to $2.6 million from $2.7 million, because Hasbro\'s revenue fell slightly during the year and did not meet company targets.

Some of the stock grants and options Goldner, 47, received are tied into a new agreement that extends his employment with Hasbro through 2014 with Hasbro. That contract boosted his base salary to nearly $1.2 million from $1 million in 2009.

Most of the stock options and grants were intended to entice Goldner, who has been CEO since 2008 and has been with Hasbro for 11 years, to remain at the company.

The grants \"address the risk that Mr. Goldner could be recruited away from the company by a competitive offer in the future,\" Hasbro said in a filing it made Wednesday evening with the Securities and Exchange Commission. The grants also help offset pension payments Goldner won\'t receive because the company froze its pension plans in 2007.

Goldner\'s other compensation and perks included $9,846 in above-market returns on deferred compensation and $420,662 in matching contributions to savings accounts and retirement accounts and for financial planning, legal and tax preparation services.

Pawtucket, R.I.-based Hasbro\'s 2010 net income climbed 6 percent while its revenue dipped 2 percent to $4 billion, hurt by difficult comparisons with 2009, when Hasbro sold toys tied in with two summer blockbusters, \"Transformers: Revenge of the Fallen\" and \"G.I. Joe: Rise of the Cobra.\" It also faced an unexpected drop in sales in December around the crucial holiday period.

Its share price jumped 47 percent during the year.

The Associated Press formula calculates an executive\'s total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.

The value that a company assigned to an executive\'s stock and option awards for 2010 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company\'s stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.\"