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EO Gives Back $2 Million Bonus Because 'He Does Not Believe That He Should Receive Such An Award'
DEC. 18, 2014, 3:40 PM
Executive bonuses often get ridiculous.
In light of that, Plum Creek Timber Co. CEO Rick Holley just did something quite admirable.
He gave back 44,445 restricted-stock units, worth nearly $2 million.
According to a regulatory filing, "Mr. Holley elected to return the restricted stock units because he does not believe that he should receive such an award unless Plum Creek's stockholders see an increase in their investment return."
Plum Creek has hit some choppy water.
As observed by Dan Primack on Fortune, the timber company has had flat revenue for two years, with net income expected to fall this fiscal year.
"It's hard to remember the last time a CEO voluntarily gave up stock as a sort of apologia to disappointed investors," Primack says.
If executives do anything with their bonuses other than squirrel them away, they often redistribute the money to their hardworking teams as a massive high five.
In 2013, for example, Lenovo CEO Yang Yuanqing shared $3.25 million of his bonus with employees — equivalent to a month's salary for many Chinese workers — as a toast to the company's setting sales records two years in a row.
That same year, Next CEO Lord Wolfson gave his $3.7 million bonus to his employees as "a gesture of thanks and appreciation from the company for the hard work and commitment you have given to Next over the past three years and through some very tough times."
If Plum Creek can turn it around, maybe Holley can use his bonus for a celebratory share, too.
EO Gives Back $2 Million Bonus Because 'He Does Not Believe That He Should Receive Such An Award'
DEC. 18, 2014, 3:40 PM
Executive bonuses often get ridiculous.
In light of that, Plum Creek Timber Co. CEO Rick Holley just did something quite admirable.
He gave back 44,445 restricted-stock units, worth nearly $2 million.
According to a regulatory filing, "Mr. Holley elected to return the restricted stock units because he does not believe that he should receive such an award unless Plum Creek's stockholders see an increase in their investment return."
Plum Creek has hit some choppy water.
As observed by Dan Primack on Fortune, the timber company has had flat revenue for two years, with net income expected to fall this fiscal year.
"It's hard to remember the last time a CEO voluntarily gave up stock as a sort of apologia to disappointed investors," Primack says.
If executives do anything with their bonuses other than squirrel them away, they often redistribute the money to their hardworking teams as a massive high five.
In 2013, for example, Lenovo CEO Yang Yuanqing shared $3.25 million of his bonus with employees — equivalent to a month's salary for many Chinese workers — as a toast to the company's setting sales records two years in a row.
That same year, Next CEO Lord Wolfson gave his $3.7 million bonus to his employees as "a gesture of thanks and appreciation from the company for the hard work and commitment you have given to Next over the past three years and through some very tough times."
If Plum Creek can turn it around, maybe Holley can use his bonus for a celebratory share, too.
