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The compensation package for Alcoa Inc.'s CEO rose just slightly in 2011, after he agreed to a 42 percent cut in his performance-based cash bonus when business weakened in the last half of the year.
According to an Associated Press analysis of a company regulatory filing late Thursday, Klaus Kleinfeld's overall compensation totaled $12.6 million, up 2 percent from 2010.
The 2011 package consisted primarily of restricted stock and option awards valued at $9.5 million when granted on Jan. 25, 2011, compared with $8.1 million a year earlier. The value of the most recent awards declined along with the company's stock price when economic worries hurt business in the last six months of 2011.
Alcoa's share price was $8.65 on Dec. 30, down 47 percent from $16.24 on Jan. 25. For the year, the price dropped 44 percent.
Kleinfeld and the compensation committee agreed to cut his incentive compensation to $1.5 million from $2.6 million in 2010. Other compensation totaled $189,103 for use of a company car and aircraft as well as retirement contributions. That compared with $205,348 in 2010.
The aluminum manufacturing giant's business weakened in the third and fourth quarters as concerns grew about the impact of the European debt crisis on the global economy. The price of aluminum fell more than 27 percent in the fourth quarter from a peak in April.
Alcoa is based in New York.
The Associated Press executive compensation formula is designed to isolate the value the company's board placed on the executive's total compensation package during the last fiscal year. It includes salary, bonuses, perks, above-market interest on deferred compensation and the estimated value of stock and stock options awarded during the year.
The calculations do not include changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.