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.