MILWAUKEE—Molson Coors Brewing Co.’s chief executive, Peter Swinburn, earned $5.6 million in 2008, according to Associated Press calculations of data filed with regulators Tuesday.
Swinburn, 56, took over as chief executive and president of the Denver-based brewer in July, when former Chief Executive Leo Kiely left to lead operations of MillerCoors, the company’s joint venture with SABMiller’s U.S. unit. Swinburn previously led subsidiary Coors Brewing Co. and held other positions with Molson Coors, maker of Coors Light and Blue Moon, among other beverages.
Kiely, who had led Molson Coors since 2005, received compensation valued at $4.2 million for the first half of the year, according to filings with the Securities and Exchange Commission. He earned nearly $6 million as chief executive in all of 2007. MillerCoors is not a public company so no filing will show Kiely’s compensation in his new role, Molson Coors said.
According to Tuesday’s filings, Swinburn received a salary of $746,963 in 2008. He was also paid a performance-based bonus of $824,277 and $1.6 million in all other compensation. That figure includes perquisites such as financial planning, sports tickets and a car allowance, although the company did not specify how much was spent on each. Molson Coors did say that the bulk of the other compensation figure—about $1 million—came in the form of a tax gross-up.
Much of his pay package was in stock and options estimated to be worth $2.4 million at the time they were granted. The options, with exercise prices ranging from $55.23 to $57.76, now have very little value because the stock price has since tumbled on concerns about declining sales volume, high costs and volatile foreign exchange rates, which weigh down sales. Shares closed trading Tuesday at $34.28.
The Associated Press formula is designed to isolate the value the company’s board placed on the executive’s total compensation package during the most recent fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive’s compensation in the previous fiscal year.
Last year was a big one for Molson Coors, which also has a headquarters in Canada. The company, this country’s third-largest brewer, paired with rival SABMiller’s U.S. unit to save on costs and better compete against industry leader Anheuser-Busch.
The joint operation started last summer, with the goal of better leveraging marketing and distribution of key brands like Miller Lite and Coors Light. Analysts say it is well on track to achieve its goal of saving $500 million in costs by 2011, despite high costs and a weak economy.
For the year, Molson Coors’ net income dropped 22 percent to $388 million, or $2.09 per share, from $497.2 million, or $2.74 per share.
Molson Coors has scheduled its annual meeting for May 13 in Montreal.
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