Stock Awards Up, Bonuses Down at Deltic Timber

Executives of Deltic Timber Corp. of El Dorado had higher stock awards in 2011 but bonuses were lower or even nonexistent.

As a result, President and CEO Ray Dillon’s total compensation last year dropped by about $380,000, from $2.26 million in 2010 to $1.875 million in 2011. Dillon also realized almost $380,000 by exercising stock options during the last calendar year.

The publicly traded real estate and timber company (NYSE: %%DEL%%), still suffering from the housing bust, had a profit of $2.7 million in 2011, down from $12.4 million in 2010.

Dillon’s compensation and that of four other named executive officers was included in the company’s annual proxy statement filed Friday with the Securities & Exchange Commission. The statement revealed that the shareholders’ meeting will be held at 10 a.m. on April 26 at the South Arkansas Arts Center in El Dorado.

Shareholders have the opportunity to vote on four items, mostly routine. They include the re-election of directors, reappointment of KPMG LLP as outside auditor and a now-routine annual advisory vote on the company’s executive compensation policy.

Shareholders are also able to approve a 10-year extension of the stock incentive plan first adopted in 2002. An amendment in the plan is proposed limiting annual stock awards to 75,000 shares.

Compensation for other top executives in 2011 was as follows:

• CFO Kenneth D. Mann received total compensation of $1.04 million, up from $954,199 million in 2010. His base pay was raised from $281,667 to $305,833, and he had stock awards worth $243,597, up from $171,812 the previous year. He did not receive a bonus, however, after getting $285,000 in 2010. Mann realized an additional $104,280 by exercising stock options.
• Kent L. Streeter, vice president of operations, saw his total compensation drop by about $25,000, to $738,993. He received an additional $35,000 in stock awards and a $9,375 raise in his base pay, but his bonus of $24,375 was almost $150,000 less than in 2010. Streeter realized $216,691 by exercising stock options.
• David V. Meghreblian, vice president of real estate, got a $10,000 raise in his base pay, to $216,000, but his bonus was cut from $149,165 to $9,277. His total compensation was still higher – $696,411 compared with $659,065 – thanks to a $177,103 change in his pension’s value. He did not exercise stock options in 2011.
• General Counsel Jim F. Andrews Jr., who became a named executive officer in 2011, was paid a base salary of $169,167 and had total compensation of $439,512 when options and stock awards were included. He didn’t not exercise stock options last year.