Home Depot CEO and chairman Frank Blake had his compensation for last year rise by more than $500,000 as the company notched its first increase in annual sales since 2006.
Blake earned about $10.5 million for the year, up from his 2009 compensation of $9.9 million, the company disclosed in filings on Monday. Of the CEO’s $10.5 million, $1.7 million is contingent on future performance goals. Other top Home Depot executives also had their total compensation rise by $100,000 or more as the Atlanta home improvement retailer met many of its annual goals.
Blake's salary rose to $1,056,538, an increase of more than $31,000, while his stock awards, options and non-equity compensation also rose.
Blake's compensation -- and that of Home Depot's other highest-paid executives -- is tied mostly to the performance of both the company and Home Depot's stock. The executives did not have their compensation rise to the highest possible level.
While Home Depot failed to meet its goal to increase its U.S. market share for the year, the company met other goals, including a rollout of its regional distribution centers, increased traffic and orders on homedepot.com and higher customer engagement.
Home Depot's sales of $68 billion exceeded its target level, as did its operating profit of $5.84 billion. The company also saw inventory turns above its goal.
Separately, the company announced the issuance of $2 billion in senior notes, $1 billion of which will be used to repurchase stock.
The shares to be repurchased are in addition to Home Depot's previously announced goals to repurchase about $2.5 billion of outstanding shares using excess cash.
In a statement, Blake said Home Depot's business continues to stabilize, and the company is committed to returning capital to shareholders.
Home Depot expects sales to be up about 2.5 percent for 2011.
