Alcoa CEO Klaus Kleinfeld earned $11.2 million in 2009 as aluminum maker faced weaker demand

Alcoa CEO Kleinfeld earns $11.2 million in 2009

DENVER — Alcoa Inc. CEO Klaus Kleinfeld received a compensation package valued at $11.2 million in 2009 as the aluminum manufacturer struggled amid plummeting demand, according to an Associated Press calculation of figures disclosed in a regulatory filing Friday.

Kleinfeld’s compensation increased 15.5 percent from 2008, when he earned $9.7 million. He took over as CEO in May 2008 from Alain Belda. Prior to that, Kleinfeld was Alcoa’s chief operating officer.

Kleinfeld, who also serves as president, received $1.4 million in 2009 salary, as well as stock options valued at $5.8 million when they were granted.

His performance-based bonus nearly doubled to $3.8 million in 2009 as he revamped the company’s cost structure and took other steps to counter the steep fall in orders, declining aluminum prices and the credit crisis, Alcoa said.

Kleinfeld also received other compensation of $227,466, including allowances for jet and automobile travel and retirement contributions.

In 2008, Kleinfeld earned $1.4 million in base salary and a performance-related bonus of $1.9 million. He also received stock options valued at $5.6 million when they were granted. His other compensation totaled $836,552, which included $428,305 in relocation expenses.

Pittsburgh-based Alcoa struggled in 2009 as the recession dried up demand in key markets, including automobile manufacturing and construction. The company eliminated thousands of jobs, curbed production and sold businesses.

Kleinfeld said last month that he expects key markets to improve in 2010.

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 bonus, 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.