Whole Foods CEO compensation increases in 2009 but he gives away gains

Whole Foods CEO pay valued at $653,671 in 2009

PORTLAND, Ore. — Whole Foods Market Inc. CEO John Mackey’s compensation grew in 2009 but the founder of the natural and organic food grocery chain donated the gains to a farm-animal welfare group, standing by his commitment to keep his pay low.

Mackey voluntarily cut his salary to $1 in 2007 as the company entered a turnaround effort. He also elected to forgo earning any future cash compensation, stock awards or other options awards.

Mackey has stood by his commitment as Whole Foods, based in Austin, Texas, has begun to show signs of recovery.

According to a document filed with the Securities and Exchange Commission on Monday, Mackey’s compensation for the 2009 fiscal year was valued at $653,671, up from $33,831 in fiscal 2008.

The CEO’s salary remained at $1 and he received no bonus, perks or stock options, as in the prior year.

Mackey’s only other compensation in 2009 was $653,670, mainly the balance from a previous incentive bonus plan that was frozen when he reduced his salary. The $607,800 balance was paid to him during the year and he subsequently donated the after-tax proceeds of $379,636 to the Global Animal Partnership, a nonprofit organization that works to improve the lives of farm animals.

That was up from $33,830 in the prior year, which did not include the grant of stock options but represented the company’s expense associated with his existing options vesting during the year.

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 sometimes differ from the totals released by the companies.

Whole Foods continues to struggle along with the overall economy but said during its last quarterly earnings report that its sales have turned a corner. It is scheduled to report its first-quarter results on Feb. 16.

The value of the company’s stock more than doubled in value in the past year.

However, Mackey remains a controversial company leader having previously been the focus of an SEC investigation for blogging under a different name about his company and recently making inflammatory comments about health care reform in an opinion piece in the Wall Street Journal.