A quick story from the Pioneer Press – Early exit cuts Stroucken pay package. The departing CEO of H.B. Fuller located north of St. Paul is taking a compensation package with him worth $18.5 million. The article simply states:
The news release noted Stroucken is receiving $4 million less than he would have had if he had stayed through the March 31, 2007, the end of his contract.
There is something you don’t see too often in today’s world – a CEO who could have made much more had he completed his contract that ends in 6 months. Obviously, he is leaving with a lucrative compensation package, but here is why:
“The value of the options and stock are largely due to what Al did while he was here,” said Steven Brazones, director of investor relations for H.B. Fuller. “His compensation is tied to how the company performs.”Stroucken, 59, joined Fuller in 1998 and led the company through a series of acquisitions. The company’s improving financial performance showed up in the stock price, which is up more than 80 percent since early 2005.
80%! Think of the shareholder value that has been created during his tenure as CEO. I bring this up because we have worked with this company in the past and it is an impressive organization.
This CEO helped grow the company and received a sizable reward for it. With all of the Enron heartburn that still exists, it is refreshing to read a story about a CEO who brought great value to his company and didn’t milk it for every last cent.