Kellogg CEO David Mackay’s pay falls 22 percent in 2009 to $7.8 million as stock awards dip

Kellogg CEO Mackay’s pay falls 22 percent in 2009

PORTLAND, Ore. — Kellogg Co. Chief Executive David Mackay received compensation valued at roughly $7.8 million in fiscal 2009, down 22 percent from his 2008 pay, according to an Associated Press calculation of figures disclosed in a regulatory filing Monday.

The head of the food and cereal company received a base salary of about $1.2 million, up 5 percent from the prior year. He also received a performance-based bonus of nearly $2.8 million, up more than 6 percent from the prior year.

Mackay received stock and options awards that were valued at $3.5 million when they were granted. In 2008, he received stock and options that were worth nearly $5 million at the time.

Mackay also received perks worth $362,707 in 2009, which included company contributions to savings and retirement plans, life insurance, financial planning services and other benefits. In 2008 he received $1.4 million in perks, including $863,192 as a payment for the elimination of a stock option award program.

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 SEC.

Kellogg, which makes Pop-Tarts toaster pastries, Eggo frozen waffles, Cheez-It crackers and other grocery mainstays, saw its profit climb 5 percent in 2009 as consumers continued to purchase its key brands and the company kept costs low. However it was a challenging year for the food maker as sales slipped 2 percent to $12.58 billion.

The company, based in Battle Creek, Mich., plans to hold its annual shareholder meeting on April 23.