NEW YORK (AP) — Zimmer Holdings Inc. Chief Executive David C. Dvorak received 40 percent less compensation in 2008 on a decline in the value of stock and stock options.
Dvorak, 45, received overall compensation of just under $6.2 million, down from $10.3 million a year prior. His salary rose 23 percent to $742,308 while his performance-based cash bonus rose 69 percent to $691,350. Perks, which include contributions to his retirement plan, fell slightly to $38,977.
The bulk of his compensation, though, was in the form of stock options. Dvorak received 200,000 options to buy shares at $76.33 each. The fair-market value for those options on the day they were granted in February 2008 was about $4.7 million, though the options are currently “underwater” or worth little, since the stock is trading under $35 a share.
In 2007, Dvorak received stock-based compensation of $9.3 million.