Baker Hughes leader got $8.3M in 2009 compensation

HOUSTON

The top executive at Baker Hughes Inc. got 2009 compensation valued at more than $8.3 million, a decline of 37 percent from 2008 as sales and profit fell in a tough year for oilfield-services companies, according to an analysis by The Associated Press.

The compensation package for principal executive Chad C. Deaton lost value because of smaller payments under long-term incentive programs.

Deaton received a salary of $1.16 million, unchanged from 2008, and stock grants and options valued at $5.2 million when they were issued, about the same as in 2008.

But Deaton's long-term incentive was set at $1.5 million instead of the $6.4 million in 2008. He also received $446,886 in other compensation, mostly a contribution to a retirement plan, according to a company filing last week with the Securities and Exchange Commission.

The Associated Press calculates compensation to include salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.

The figures don't include changes in the present value of pension benefits. They sometimes differ from totals that companies list in the summary compensation table of proxy statements filed with the SEC, which measure the accounting charge taken for the executive's compensation.

Last year, Baker Hughes profit plunged by three-fourths, to $421 million from $1.64 billion in 2008. Sales fell to $9.66 billion from $11.86 billion.

Oil services companies struggled last year as hundreds of drilling rigs were idled due to crude oil prices staying below 2008 levels. Baker Hughes shares sank sharply in late 2008, along with crude prices, but rallied to gain 26 percent during 2009.

Baker Hughes helps energy-exploration companies remove oil and gas from the ground.