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Executive Pay at Deltic Drops in 2015

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Executive compensation at Deltic Timber Inc. declined in 2015 compared with the previous year, with CEO Ray Dillon earning $1.89 million last year compared with $1.93 million in 2014, according to Deltic’s proxy, filed Friday.

The El Dorado company cited two reasons for the decline: its failure to reach a 2015 net income goal of $19 million established by the company’s compensation committee, and Deltic’s total shareholder return falling below the threshold set by the committee for shares to vest.

Deltic reported net income of $2.7 million, or 21 cents per share, in fiscal 2015 compared with $19.7 million, or $1.56 per share, for the year ended Dec. 31, 2014.

The other named executive officers and their 2015 compensation:

  • Kenneth Mann, vice president, treasurer and chief financial officer, $914,876 in 2015 compared with $1.11 million in 2014.
  • Kent Streeter, vice president of operations, $654,095 in 2015 compared with $773,099 in 2014.
  • David Meghrebian, vice president of real estate, $594,820 in 2015 compared with $769,964 in 2014.
  • Jim Andrews Jr., vice president, general counsel and secretary, $601,801 in 2015 compared with $629,375 in 2014.

Deltic noted a number of financial and operational achievements in 2015, including:

  • The generation of $29.7 million of cash flow from operations.
  • The repurchase of 250,789 shares of Deltic common stock, or 2 percent of the outstanding shares.
  • The securing of a $100 million 10-year term note at a low, fixed interest rate.
  • The harvest of 755,417 tons of pine saw timber, an increase of 21.3 percent from 2014.
  • The harvest of 394,165 tons of pine pulpwood, performing critical forest maintenance.
  • The investment of $24.4 million of capital in projects in the company’s manufacturing facilities to increase the hourly lumber production rate in the sawmills, improve critical operating metrics in the medium-density fiberboard plant and improve efficiencies in all facilities.
  • The development and offering for sale of 105 newly developed residential lots in two of the company’s real estate developments.
  • The sale of 100 residential lots during the year.

The top three largest shareholders in Deltic, as revealed in the proxy, are Southeastern Asset Management Inc. of Memphis, 14.76 percent of the company; Wellington Management Group of Boston, 10.9 percent; and BlackRock Inc. of New York, 9.09 percent.

Deltic’s annual meeting is scheduled for 10 a.m. April 28 at the South Arkansas Arts Center in El Dorado. 

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