UP CEO got nearly $12 million compensation in 2008
(The Associated Press issued the following on April 3, 2009.)
OMAHA, Neb. Union Pacific Corp. boosted President and Chief Executive Jim Young's compensation 20 percent, to nearly $12 million, last year, according to an Associated Press analysis of a company filing Friday.
But the railroad said in documents filed with the Securities and Exchange Commission that none of its top 150 executives will receive a raise in 2009 because of the current economic environment.
Young's salary grew nearly 5 percent, to $1.14 million, and his bonus increased 13 percent, to $3 million.
Young also received restricted stock and stock options worth $7.5 million in 2008. That was up from the $6 million worth of stock options and grants Young received in 2007.
Union Pacific faced a number of challenges in 2008, including record-high fuel costs, a weakening economy and weather disruptions. But the Omaha-based railroad said it excelled in the face of those challenges, so its board decided to increase the bonuses for top executives.
"Despite these obstacles, we continued our momentum from 2007 with notable improvements in safety, service and financial performance, achieving record results in most categories," the railroad's board wrote.
Union Pacific furloughed 3,150 workers during 2008, and the railroad planned to reduce its active work force of 18,062 by 5 percent more during the first quarter of 2009.
It was able to increase prices on long-term contracts that came up for renewal last year. Those price increases, combined with more-efficient operations, helped the railroad generate $2.34 billion net income, or $4.54 per share, in 2008. That was 26 percent more than Union Pacific made the previous year.
The AP's 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, so they may vary from totals that companies report.
Union Pacific said it will hold its annual shareholder meeting May 14 in Salt Lake City, where the railroad was incorporated, even though company headquarters are in Omaha.
Shareholders will be asked to reconsider a proposal they have rejected three times before. The proposal from New York City public workers with pension investments in Union Pacific would force the company to make regular disclosures of political contributions in reports separate from government filings.
The workers said Union Pacific has contributed at least $3.3 million since the 2002 election cycle.
But workers say Union Pacific's public disclosures reveal an incomplete picture because they don't show money given to trade groups for political purposes.
The railroad's board has opposed the measure because it believes the current disclosures are adequate, and Union Pacific says political contributions benefit the company. Union Pacific also says the majority of its political contributions come from employees who voluntarily contribute to the railroad's political action committee.
Union Pacific operates 32,400 miles of track in 23 states from the Midwest to the West and Gulf coasts.
