N.C.: Reynolds American CEO Received $6.4 Million Compensation Package

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Susan M. Ivey, chairman and chief executive of Reynolds American Inc., received a compensation package valued by the company at $6.4 million for 2006, according to a proxy statement filed last week.

Ivey received a salary of $1.14 million, incentive compensation of $2.22 million and restricted stock the company valued at $2.8 million on the date the award was granted.

She received perks worth $206,897 for items including executive liability insurance, complimentary tobacco products, personal airline flights on company-owned planes and contributions to a defined benefit plan.

The restricted stock grants were valued at $52.60, the closing price for Reynolds stock on March 6, 2006.

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.

Winston-Salem, N.C-based Reynolds – maker of Camel, Kool and Pall Mall cigarettes – reported last month that fourth-quarter profit fell 39 percent as it wrote down the value of some trademarks and shipped fewer cigarettes to wholesalers.

The company’s net income dropped to $180 million, or 61 cents per share, from $297 million, or $1.01 per share, in the year ago period. Revenue edged up 1 percent to $2.07 billion from $2.05 billion in the previous year.

For the year, Reynolds American reported earnings of $1.21 billion, or $4.10 per share, compared with $1.04 billion, or $3.53 per share, in 2005. Revenue rose to $8.51 billion from $8.26 billion a year earlier.

The company forecast 2007 earnings per of $4.25 to $4.45.

When the earnings results were announced, Ivey said the company remained optimistic for growth this year.