IBJNews

Haynes pays CEO almost twice as much as predecessor

Back to TopCommentsE-mailPrintBookmark and Share

Kokomo-based Haynes International Inc.’s revenue dropped 31 percent last year and its bottom line swung from a healthy profit to a substantial loss. But the manufacturer of specialized alloys used in aerospace, chemical processing and gas engines paid its new CEO substantially more than his predecessor.

In fiscal 2009, Haynes awarded President and CEO Mark M. Comerford total compensation of $1.46 million—nearly twice as much as the $738,568 his predecessor, Francis Petro, made the previous year. Petro, 70, retired Sept. 30, 2008.

Haynes revenue fell to $439 million in the fiscal year ended Sept. 30, down from $637 million in fiscal 2008. During the same period, the company posted a $52.3 million loss, compared to a profit of a $62.8 million in 2008.

Compensation details were disclosed in the company's annual proxy statement, which was filed Jan. 26.

Hired in September 2008, Comerford, 48, was president of Alloy Products, a business unit of Mayfield Heights, Ohio-based Brush Engineered Materials Inc. before joining Haynes.

The proxy statement shows his compensation included a base salary of $406,203, a $340,000 signing bonus, $76,708 for relocation, $9,600 for a car, $3,600 for a country club membership and restricted stock and options worth $608,198 at the time of their grant dates.

Comerford was eligible for an additional cash bonus of $162,481—or 40 percent of his base salary—according to the proxy statement, but the company chose not to award it. The rest of his management team also was eligible for bonuses worth 25 percent of their base salaries but did not receive them.

“The global economic crisis of fiscal 2009 impacted executive compensation this fiscal year in several ways,” Haynes’ proxy statement reads. “First, the base salaries of the named executive officers were all temporarily reduced by 15 percent effective Aug. 6, 2009, and remained at that level until Jan. 1 2010. Second, the Compensation Committee and senior management came to a decision that, in light of economic conditions and other cost cutting measures taken by the company, no cash bonus would be paid out ... for fiscal 2009.”

The rest of Haynes’ management team took pay cuts last year. Chief Financial Officer Marcel Martin saw his pay decline 25.5 percent, from $561,514 in 2008 to $418,056 in 2009. Vice President of Marketing James Laird took a 23.3 percent pay cut, from $496,559 to $380,748. Vice President of Manufacturing Operations Scott Pinkham’s compensation declined 14.9 percent, from $396,722 to $337,571.

Marlin C. Losch III, Haynes' vice president of North American sales, made $312,297 in fiscal 2009. The company didn’t disclose his pay among its top five named executives the previous year.

Haynes employed Santa Rosa, Calif.-based Total Rewards Strategies as its independent compensation consultant. Board member Timothy McCarthy, chairman of Pennsylvania-based C.E. Minerals, chaired its compensation committee, which met 13 times last year.

Haynes also reduced the amount it spent on board pay, primarily by eliminating one director position. In fiscal 2008, Haynes paid seven independent directors a total of $1.2 million. Last year, the company paid six directors just over $1 million. Of that, $660,000 came as cash fees; the remainder was awarded in restricted stock.

Haynes’ stock price fell from $45.45 per share to $31.58 per share over its last fiscal year. It opened trading Friday at $30.52.

IBJ uses the Associated Press formula to calculate executive pay. It gauges the value of compensation such as stock and options grants at the time they are awarded, not the time they are cashed in.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT