- The Washington Times - Monday, March 23, 2009

NEW YORK (AP) - Reynolds American Inc.’s chief executive, Susan M. Ivey, received compensation valued by the nation’s second-biggest tobacco company at more than $8.8 million in 2008 _ about 12 percent more than in 2007, an analysis of regulatory filing Monday showed.

Last year, the maker of Camel, Kool and Pall Mall saw profit grow about 2 percent as revenue fell by 2 percent. The cigarette maker had raised prices to offset sales volume declines.

Ivey earned most of her pay as a $5.19 million performance-based incentive bonus. And she earned a salary of $1.25 million.

She was given stock and options worth $2.18 million on the day they were granted, when shares were trading at $35.16. On Monday, shares traded at $37.38, meaning the award was worth more.

Ivey, who has headed the company since January 2004, was also given other compensation worth $211,416. That included a $79,000 payment given in place of the company’s old executive perks program, a $30,000 club membership and an undisclosed value for personal flights on company-owned planes.

In 2007, Ivey’s compensation was valued at $7.9 million.

The Associated Press 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 Securities and Exchange Commission, which reflect the size of the accounting charge taken for the executive’s compensation in the previous fiscal year.

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