BOSTON, March 9 (Reuters) - U.S. oil refiner Phillips 66 cut by 35 percent what it paid Chief Executive Greg Garland last year under its bonus plan, citing market conditions and stock performance.
Phillips 66 is one of the earliest among large energy companies to disclose compensation for its top executives in 2014, a year when profits and revenue at many came under pressure from falling oil prices.
Garland received a total of $24.5 million for the year, according to a securities filing on Monday, up from $19.8 million in 2013, driven largely by a higher value calculated for future pension payments. Garland’s base salary rose to $1.51 million in 2014 from $1.44 million in 2013.
But the value of incentive payments to Garland fell to $2.66 million in 2014 from $4.11 million in 2013.
While the company performed well against financial and operational targets, the filing states, “market conditions and stock performance at the end of 2014 did not, in the Compensation Committee’s view, justify a full payout” of the incentive pay that Garland and other top executives were eligible to receive.
Shares in Phillips 66 closed at $71.70 on Dec. 31, down 7 percent for the year. They have since come back and were above $77 at midday on Monday. (Reporting by Ross Kerber; Editing by Richard Valdmanis and Peter Galloway)