Hasbro Inc., the world’s second-largest toymaker, last year paid CEO Alfred Verrecchia 40 percent more than No. 1 Mattel paid his counterpart, Robert Eckert, according to Bloomberg News.
Verrecchia, 64, received an $8.41 million package that included $1 million in salary, $2.49 million in stock options and a $3 million bonus, Hasbro said in a filing yesterday with the U.S. Securities and Exchange Commission. Eckert, 52, received $5.99 million in compensation in 2006, including $3.24 million in stock and options, Mattel has said. The gap was wider than in 2005, when Verrecchia’s compensation totaled $4.27 million and Eckert’s $3.65 million.
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Hasbro’s share price climbed 35 percent last year, as the company’s profit increased 8.5 percent to a record $230.1 million on sales that rose 2.1 percent to $3.15 billion. By comparison, Mattel shares surged 43 percent in 2006, as the company posted a 42-percent increase in net income to $286.4 million on sales that rose 9.1 percent to $5.65 billion.
But “relative to targets, Hasbro may have had a better year,” Sean McGowan, an analyst at Wedbush Morgan Securities in New York who has “buy” ratings on both Hasbro and Mattel, told Bloomberg News. “Hasbro was widely expected to have a challenging 2006, and it had a good year.” And Hasbro spokesman Wayne Charness noted that, “In 2006, Hasbro reported record operating profit and record net earnings. Mr. Verrechia received a total compensation package to appropriately recognize and reward his contribution.”
Additional information is available at hasbro.com and www.mattel.com.
