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Tyson cuts execs pay

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Jason- you and SH better get out there and get some fundraisers going- or these poor folk won't be able to survive the year on those paltry salaries and benis :wink:


Tyson’s top exec handed pay cut

Posted on Saturday, December 31, 2005

Tyson Foods Inc., the world’s largest meat processor, said Friday that it cut Chairman and Chief Executive Officer John Tyson’s pay by 44 percent this year as profit fell.

John Tyson, who initiated the takeover of IBP Inc. in 2001 that made Tyson Foods the world’s largest meat company, received a $ 3. 25 million bonus in fiscal 2005, a salary of $ 1. 14 million and other benefits for a total package of more than $ 5. 5 million according to a proxy filing with the U. S. Securities and Exchange Commission.

His compensation for 2004 was about $ 9. 947 million, including stock options estimated at $ 2. 7 million by Bloomberg News.

Tyson’s compensation is “reflective of the company’s performance over the last year,” FTN Midwest Research analyst Christine McCracken said in a telephone interview from Manhattan Beach, Calif. “At least he wasn’t paid more in a down year.” McCracken rates the shares “neutral.”

None of Springdale-based Tyson’s five senior managers received stock options this year, the company said.

Net income at Tyson Foods fell 12 percent in the year ended Oct. 2 to $ 353 million, or 99 cents a share, from $ 403 million, or $ 1. 13, a year earlier. Tyson reported losses in its beef business in five of the last eight quarters. Sales for the year fell 1. 6 percent to $ 26 billion.

The company in April paid a $ 1. 5 million fine to settle government allegations that it hid perks given to Don Tyson, John Tyson’s father and the former chairman.

John Tyson’s compensation included $ 1. 139 million of salary and $ 1. 14 million in other compensation, such as $ 324, 472 for personal use of company aircraft and $ 241, 033 in taxes paid by the company on his behalf. Tyson Foods also paid $ 364, 426 for his health, retirement, savings and life insurance plans.

Richard Bond, Tyson Foods ’ president and chief operating officer, earned $ 2, 489, 231 for salary and bonus and also received other compensation of $ 3 million in 2005. Bond was paid more than $ 3. 3 million for salary, bonus and benefits in 2004.

Shares of Tyson Foods fell 18 cents, or 1. 04 percent Friday to close at $ 17. 10 in composite trading on the New York Stock Exchange. The stock has traded as low as $ 12. 50 and as high as $ 19. 91 over the past 52 weeks.

Tyson Foods also advised shareholders to vote against a proposal submitted by stockholder People for the Ethical Treatment of Animals, according to the filing. The Springdalebased meat company will hold its annual shareholders meeting Feb. 3 in Fayetteville

PETA, which owns 248 shares of Tyson stock, proposes Tyson issue a report to shareholders by August on the feasibility of implementing a new slaughter process in the company’s 40 U. S. chicken plants.

The process, called controlled atmosphere killing, consists of gassing poultry with argon or nitrogen to put the birds to sleep. PETA said in the proposal it advocates the method because it eliminates electrical stunning and the chance that birds are conscious during slaughter.

PETA said in the proposal submitted to Tyson that chickens raised for the company are abused and suffer painful deaths from scalding and stunning methods. Tyson said in the SEC filing that the company is researching alternative methods to handle animals, including controlled atmosphere killing and controlled atmosphere stunning.

“We believe CAS, CAK and other emerging technologies are worthy of continued study and review ; however, to date the research is incomplete and inconclusive as to whether CAS and CAK are better and more humane methods than conventional methods or what the effects might be on food safety and product quality issues,” Tyson said in the filing.

Tyson said it established an Office of Animal Well-Being in 2003, and the unit audits animalhandling practices throughout its beef, pork and chicken operations.

The proposal is likely to fail because the company has two classes of stock, Class A shares and Class B shares. Class A shares entitle holders to one vote, while 101, 598, 560 Class B shares, owned by retired chairman Don Tyson, entitle the holder to 10 votes per share.

John Tyson owns 1. 34 percent of the 253 million outstanding shares of the company as of Oct. 1, according to the SEC filing. Information for this article was contributed by Daniel Goldstein of Bloomberg News.


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