Mining industry

Freeport-McMoRan Executives Receive Multimillion-Dollar Bonuses Amid Company Success

Strategic Insights

Mar 21, 2006 — 1 min read

Freeport-McMoRan Copper & Gold Inc., a leading mining company, announced significant bonuses for its top executives in 2005. Chairman James R. Moffett's bonus increased to $19.4 million, up from $4.3 million in 2004, while President and Chief Executive Richard C. Adkerson received restricted stock awards valued at $18 million. The bonuses were awarded based on the company's strong performance in 2005, including a return-on-investment threshold and operational and strategic accomplishments. This move highlights the company's efforts to retain and reward top talent in the industry.

Key Takeaways:

Chairman James R. Moffett's 2005 bonus increased to $19.4 million, a 353% increase from 2004.
President and Chief Executive Richard C. Adkerson received restricted stock awards valued at $18 million for 2005.
The bonuses were awarded based on a return-on-investment threshold, level of cash flow from operations, and operational and strategic accomplishments in 2005.
Adkerson's 2005 bonus is significantly higher than his 2004 bonus, rising from $4 million to $18 million.
Freeport executives may choose to receive restricted stock instead of their cash bonus, with a premium to compensate for risk.
Chairman Moffett received 1.5 million stock options with an exercise price of $37.04 for 2005, while not receiving any stock options in 2004.
The company's strong performance in 2005 led to the substantial bonuses for top executives.

Statistics:

$19.4 million: Chairman James R. Moffett's 2005 bonus
353%: Increase in Chairman Moffett's 2005 bonus compared to 2004
$18 million: Restricted stock awards value for President and Chief Executive Richard C. Adkerson in 2005
353%: Increase in President Adkerson's 2005 bonus compared to 2004
$37.04: Exercise price for 1.5 million stock options granted to Chairman Moffett in 2005
2005: Year in which Chairman Moffett received 1.5 million stock options, while not receiving any in 2004.

Sources:

Dow Jones Commodities News via Comtex, March 22, 2006
Copyright (c) 2006 Dow Jones & Company, Inc.
Comtex News Network, Inc.

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