Incentive pay for CEO, other executives increased as Hormel’s stock soared

Hormel Foods Corp. had a record-setting fiscal year in 2013, and the company rewarded some of its top executives accordingly.

Hormel President and CEO Jeff Ettinger made $9.26 million in 2013, including $4.25 million in incentive pay, as the company’s stock value reached all-time highs. The company’s annual profit last year hit $526.2 million and its sales totaled $8.75 billion, both all-time bests, as well.

Ettinger made $8.07 million in 2012 and $8.96 million in 2011. By factoring in his change in pension value, however, Ettinger’s total compensation decreased. In 2013 his pension value decreased by $444,999, which put his earnings at $8.81 million. Last year, his pension increased by $3.44 million, which makes that year’s total $11.51 million, and the total in 2011 was $10.95 million with a pension value increase of $1.98 million.

In 2013, Ettinger’s base salary was $1,000,220, the same as the 2012 total, and he received stock options worth $3.94 million, up from $3.76 million the year before. He also received $65,788 in other compensation — including profit sharing, use of a company car and physical exams — up from $59,449 in 2012, and the $200 bonus paid to all full-time employees, down from $300 the year before.

Other top executives also saw pay bumps. Jody Feragen, the chief financial officer and an executive vice president, brought in $2.44 million last year, compared to $2.42 million the year before. Steven Binder, president of Hormel business units and an executive vice president, made $2.36 million, compared to $2.22 million the year before.

Senior Vice President William Snyder made $1.37 million in 2013 and Glenn Leitch, president of Jennie-O Turkey Store and a group vice president, made $1.34 million. Snyder’s and Leitch’s salaries were not listed prior to 2013, as Hormel is only required to list five executives, with now-retired Ron Fielding and Rick Bross filling out the list in 2012.

Ettinger and the company’s other top executives have propelled the company’s standing in the global meatpacking industry: The company’s annual profit has increased by 109 percent since Ettinger took the helm in 2005.

The company, which reported $526.2 million in profit in 2013, had $253.5 million in 2005. While the company’s total sales have increased substantially during that span, too, it hasn’t been on the same level. Hormel went from $5.41 billion in total sales in 2005 to $8.75 billion last year, a 62 percent increase. That’s on par with the company’s goal of growing each year by 5 percent in sales and 10 percent in profit.

Under Ettinger, Hormel has grown through acquisitions, innovations and a diverse portfolio, and 2013 was no different, with a $700-million acquisition of Skippy peanut butter grabbing international headlines.

Ettinger joined Hormel in 1989, and the company named him president of Jennie-O Turkey Store in 1999, according to hormelfoods.com.

Ettinger is a native of Pasadena, Calif. He and his wife, LeeAnn, live in Austin and have four children.