- The Washington Times - Thursday, March 12, 2009

NEW YORK (AP) - Honeywell International Inc. Chairman and Chief Executive David M. Cote received compensation last year valued at about $30.8 million, up nearly 55 percent from 2007, according to an Associated Press calculation of data disclosed in a regulatory filing Thursday.

Much of the increase came in the form of a performance-related bonus, as earnings at the company rose about 14 percent in 2008.

Cote, who received compensation last year valued by The Associated Press at $19.9 million, received a performance-related bonus for 2008 of $14 million, more than triple the year-earlier level.

Cote’s salary rose to about $1.8 million in 2008 from $1.6 million in 2007. About half of that increase was merit-based.

The executive also received stock option grants that Honeywell valued at $9 million when they were granted. However, the stock options are exercisable at $58.48, well above Wednesday’s closing share price of $26.66, so the options currently have little value. In 2007, he received options and restricted stock worth $13.4 million when they were issued.

Cote received $422,666 in other compensation, including $155,577 for his use of company aircraft, which he is contractually obliged to use for travel. Additionally, Honeywell reimbursed him $62,000 for the annual premium of a $10 million life insurance policy. Cote received other compensation of $407,930 in 2007.

The Associated Press calculations of total pay include executives’ salary, bonus, incentives, 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.

Morris Township, N.J.-based Honeywell makes aircraft equipment, specialty chemicals and building control systems.

Last year, the company posted net income of $2.79 billion, or $3.76 per share, compared with $2.44 billion, or $3.16 per share, in 2007. Revenue climbed to $36.56 billion from $34.59 billion.

Deutsche Bank-North America analyst Nigel Coe on Monday credited Cote with effecting “a structural transformation” at the company that is “exemplified by its focus on improving productivity, ‘de-layering’ middle management and cutting duplicative administrative functions.”

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