Company Paid CEO About $7 Mln In 2003

Who said it doesn't pay to work in aviation?

Textron Inc. -- parent company of Cessna and Bell Helicopter -- paid Chairman and Chief Executive Lewis Campbell nearly $7 million last year, the company disclosed on Friday. Campbell's $3 million salary and bonus were 15 percent higher than 2002. He also received about $1.5 million in restricted stock in 2003 and a long-term incentive payout of $2.1 million, which represented 62 percent of the potential target.

This may come as a surprise, especially as the company's fourth-quarter net income fell sharply amid restructuring and sluggish demand. Textron shares surged about 33 percent in 2003, but since the end of 1998 the company's stock has lagged the Standard & Poor's 500 index and a peer group index, Textron's proxy said.

Nevertheless, Textron's board felt Campbell was well worth the big bucks. According to Textron's compensation committee, his bonus took into consideration "the significant progress made during a difficult business environment" as well as on restructuring and waste-saving programs.In late 2000, Campbell unveiled a restructuring program to cut about 10,000 jobs, or 18 percent of Textron's work force. Benefits from the program and other cost-saving projects allowed Textron to offset most of the impact from declining business jet deliveries. Income from continuing operations fell 23 percent in 2003, but cash flow from operating activities was $681 million, compared to $495 million in 2002. In 2003, Campbell also received an option to buy 50,000 Textron shares valued at up to $3.5 million, assuming an annual return of 10 percent for a decade. 

FMI: www.textron.com