- The Washington Times - Friday, March 13, 2009

NEW YORK (AP) - Jai Nagarkatti, president and chief executive of biochemicals company Sigma-Aldrich Corp., received a compensation package worth $4 million in 2008, up 25 percent from a year ago, according to an Associated Press calculation of figures disclosed in a regulatory filing made late Wednesday.

Nagarkatti’s salary for the year was $750,000, a 14 percent increase from 2007. His performance bonus decreased 19 percent to $356,625. The value of his stock and options on the dates they were granted climbed 41 percent to $2.7 million, but Sigma-Aldrich shares are well short of the options’ exercise price of $52.76 per share.

The St. Louis company’s profit grew 10 percent in 2008, reaching $341.5 million, or $2.65 per share. Revenue rose 8 percent, to $2.2 billion. However, the stock was hit hard after the company reported disappointing third-quarter results, and the economic crisis also put pressure on shares.

Sigma-Aldrich stock fell 29 percent in 2008, finishing the year at $38.86. In Friday afternoon trading, the stock slid 44 cents to $34.05.

The company said the value of Nagarkatti’s other compensation, which includes payments to the company retirement plan and use of a company car, rose less than 1 percent, to about $196,200. Nagarkatti has been president and CEO of Sigma-Aldrich since Jan. 1, 2006.

The Associated Press’ compensation formula is designed to isolate the value the company’s board placed on the executive’s total compensation package during the last 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 SEC, which reflect the size of the accounting charge taken for the executive’s compensation in the previous fiscal year.

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