Titans of the Toy Business
The numbers are in for the top paid executives at public companies
By Cliff Annicelli -- Playthings, 12/1/2007
It should come as no surprise, really, that being a top executive at Mattel would place one at the peak of the toy business’ financial food chain. Mattel is the largest toy company in the world, and it did pretty well for itself in 2006—a 9 percent gain in net revenue to nearly $6 billion and a 5 percent increase in net income to $683 million—so a hefty payout to its top brass was no doubt in order. And thanks to Playthings’ first ever Toy Business Salary Scorecard, we can confirm that, yes, in fact, Robert Eckert, Mattel’s chairman and CEO, was the highest paid executive among toymakers in 2006, based solely on the officially reported salaries of the major publicly traded U.S. and Canadian firms. His $1.25 million base salary ranked above anyone else on the list by more than $200,000.
But when it came to total compensation, including bonuses and sales of options, Eckert’s wasn’t the fattest haul. That honor went to his Mattel associate, Neil Friedman, whose $1 million in base salary in 2006 was buoyed by a $1.2 million bonus and $3 million in exercised options. Those kinds of numbers propelled the president of Mattel’s Mattel Brands division to the overall top spot on this year’s list. His $5.3 million in total compensation for the year bested both Eckert and Hasbro president and CEO Alfred Verrecchia, who came in at No. 2 thanks to nearly $4.3 million in total compensation, largely built upon a a $3 million bonus.
Surprisingly, both Friedman and Verrecchia ranked behind Jakks Pacific’s Jack Friedman and Stephen Berman among the toy business honchos with the largest pure paychecks. They tied as the second highest salaried execs, each having received $1.04 million in 2006. Only comparatively conservative $250,000 yearly bonuses kept the pair lower on the overall list.
Rounding out the Top 10 for top earners in 2006 were Hasbro’s Simon Gardener (currently on garden leave), David Hargreaves and Brian Goldner; Mega Brands’ Marc and Vic Bertrand; Mattel’s Kevin Farr and RC2’s Curt Stoelting and Peter Henseler.
| Executive, company | Salary | Bonus | Other annual Income | Options Exercised | Total |
| Neil B. Friedman, Mattel | $1,000,000 | $1,200,001 | $71,7832 | $3,079,970 | $5,351,753 |
| Alfred J. Verrecchia, Hasbro | 1,000,000 | 3,000,0003 | 9,5004 | 281,154 | 4,290,654 |
| Robert A. Eckert, Mattel | 1,250,000 | 2,500,0001 | 246,2175 | 0 | 3,996,217 |
| Simon Gardner 6, Hasbro | 521,289 | 581,5307 | 28,8528 | 2,779,609 | 3,911,280 |
| David D.R. Hargreaves 9, Hasbro | 494,231 | 700,0007 | 5,0004 | 2,357,699 | 3,556,930 |
| Marc Bertrand, Mega Brands | 730,88410 | 618,75010 | 0 | 2,195,000 | 3,544,634 |
| Vic Bertrand, Mega Brands | 609,00210 | 515,62510 | 0 | 2,195,000 | 3,319,627 |
| Brian Goldner, Hasbro | 794,616 | 2,000,0003 | 0 | 0 | 2,794,616 |
| Kevin M. Farr, Mattel | 721,154 | 652,5001 | 29,44011 | 956,220 | 2,359,314 |
| Curtis W. Stoelting, RC2 | 425,000 | 212,50012 | 30,08013 | 1,680,153 | 2,347,733 |
| Peter J. Henseler, RC2 | 425,000 | 212,50012 | 7,20014 | 1,522,582 | 2,167,282 |
| Alain Tanguay, Mega Brands | 296,63510 | 102,00010 | 27,00015 | 1,646,250 | 2,071,885 |
| Joel M. Bennett, Jakks Pacific | 360,000 | 300,000 | 7,20014 | 969,482 | 1,636,682 |
| Jack Friedman, Jakks Pacific | 1,040,000 | 250,000 | 18,00014 | 277,406 | 1,585,406 |
| Stephen G. Berman, Jakks Pacific | 1,040,000 | 250,000 | 18,00014 | 277,406 | 1,585,406 |
| Arthur Shorin, The Topps Company16 | 902,019 | 467,81117 | 59,77118 | 0 | 1,429,601 |
| Helena Lo, RC2 | 230,000 | 154,10019 | 14,49220 | 1,001,535 | 1,400,127 |
| Thomas A. Debrowski, Mattel | 706,154 | 639,0001 | 40,92721 | 0 | 1,386,081 |
| Bryan G. Stockton, Mattel | 675,000 | 607,5001 | 24,44011 | 0 | 1,306,940 |
| Jody L. Taylor, RC2 | 230,000 | 154,10019 | 6,00014 | 718,816 | 1,108,916 |
| Keith Schneider 22, Russ Berrie | 321,731 | 75,00023 | 237,32024 | 349,631 | 983,682 |
| Barry Nagler, Hasbro | 475,000 | 500,0007 | 0 | 0 | 975,000 |
| Andrew Gatto, Russ Berrie | 650,000 | 260,80023 | 29,30025 | 0 | 940,100 |
| Scott Silverstein, The Topps Company16 | 428,077 | 333,01817 | 32,57326 | 130,563 | 924,231 |
| Gerardo Yepez Reyna, Mega Brands | 581,74010 | 128,18310 | 87,39815 | 0 | 797,321 |
| Jeffrey G. Katz 27, LeapFrog | 300,000 | 300,00028 | 96,05529 | 0 | 696,055 |
| Thomas J. Kalinske 30, LeapFrog | 550,777 | 67,50031 | 7,20014 | 0 | 625,477 |
| Anthony Cappiello, Russ Berrie | 325,000 | 163,00023 | 45,16632 | 26,631 | 559,797 |
| Catherine Jessup, The Topps Company16 | 283,961 | 149,06517 | 25,15333 | 90,737 | 548,916 |
| Kathryn E. Olson 34, LeapFrog | 230,151 | 0 | 307,07135 | 0 | 537,222 |
| Timothy M. Bender 36, LeapFrog | 328,263 | 200,00037 | 7,80014 | 0 | 536,063 |
| Jerome Perez 38, LeapFrog | 74,037 | 0 | 453,28439 | 0 | 527,321 |
| Ira Friedman, The Topps Company16 | 280,539 | 163,00217 | 25,66340 | 0 | 469,204 |
| Michel Moggio 41, Mega Brands | 318,44310 | 74,96310 | 65,16615 | 0 | 458,572 |
| Warren Friss, The Topps Company16 | 273,519 | 157,76317 | 17,99542 | 0 | 449,277 |
| Michael J. Dodd, LeapFrog | 270,769 | 57,00043 | 95,81644 | 0 | 423,585 |
| Marc S. Goldfarb 45, Russ Berrie | 281,385 | 120,40023 | 18,96946 | 0 | 420,754 |
| Jeffrey Bialosk y47, Russ Berrie | 292,754 | 100,00048 | 16,23549 | 0 | 408,989 |
| Gregory Kilrea, RC2 | 204,616 | 140,70050 | 7,20014 | 54,388 | 406,904 |
| William B. Chiasson, LeapFrog | 301,250 | 61,00043 | 7,80014 | 0 | 370,050 |
| James J. O'Reardon Jr. 51, Russ Berrie | 214,350 | 86,00023 | 10,60014 | 29,567 | 340,517 |
| John Wille 52, Russ Berrie | 126,923 | 0 | 168,44353 | 0 | 295,366 |
| Debra Fine, Small World Kids | 275,424 | 0 | 0 | 0 | 275,424 |
| Howard Bennett, Small World Kids | 148,005 | 60,000 | 0 | 0 | 208,005 |
| Robert Rankin 54, Small World Kids | 196,329 | 0 | 0 | 0 | 196,329 |
| John Matise 55, Small World Kids | 146,392 | 0 | 5,50056 | 0 | 151,892 |
| Ronald S. Kaplan, Action Products | 145,100 | 0 | 0 | 0 | 145,100 |
| John Nelson 57, Small World Kids | 124,231 | 0 | 0 | 0 | 124,231 |
| John R. Oliver 58, Action Products | 100,500 | 0 | 0 | 0 | 100,500 |
| Lawrence Bernstein 59, Action Products | 90,400 | 0 | 0 | 0 | 90,400 |
| 1. Represents annual cash incentive compensation paid on March 8, 2007, for performance in 2006 per the 2002 Mattel Incentive Plan. 2. Includes perquisites such as automobile allowances, financial counseling and tax return preparation, physical exam, country club membership costs, tax gross-ups, and personal travel and/or house-hunting expenses in connection with anticipated relocation. 3. Management incentive awards earned under the company's 2004 Senior Management Annual Performance Plan for performance during fiscal 2006. 4. Financial planning and tax preparation perquisites. 5. Includes perquisites such as automobile allowances, financial counseling and tax return preparation, physical exam, country club membership costs, tax gross-ups, personal use of company aircraft and a company-provided home security system. 6. Effective March 31, 2007, Gardner ceased to perform services for the company and went on U.K. garden leave. The leave period ran from April 1, 2007, through November 30, 2007, during which time the company continued to pay Gardner's salary and provided him with applicable employee benefits. 7. Management incentive awards earned under the company's 2006 Management Incentive Plan for performance during fiscal 2006. 8. Consists of $3,910 in financial planning and tax preparation perquisites and $24,942 paid to Mr. Gardner in lieu of providing a Company car and a fuel allowance. 9. Appointed Executive Vice President, Finance and Global Operations and Chief Financial Officer effective in January 2007. He was formerly Senior Vice President and Chief Financial Officer. 10. In Canadian dollars. 11. Includes perquisites such as automobile allowances, financial counseling and tax return preparation, physical exam, country club membership costs, and tax gross-ups. 12. Includes a $72,250 discretionary bonus and an $140,250 incentive bonus. 13. Includes perquisites such as automobile allowances and personal plane usage. 14. Automobile allowance. 15. Includes automobile allowances and other perquisites. Amount is in Canadian dollars. 16. Fiscal year ended March 3, 2007. 17. Represents bonus earned under the Annual Incentive Bonus Plan. 18. Represents a car allowance and the time allocable to the company driver. 19. Includes a $78,200 discretionary bonus and a $75,900 incentive bonus. 20. Consists of perquisites including an automobile allowance and country club memberships. 21. Includes perquisites such as automobile allowances, financial counseling and tax return preparation, physical exam, country club membership costs, tax gross-ups, personal use of company aircraft, and a company-provided home security system. 22. Employment with the company terminated November 30, 2006. 23. Represents payout under the Incentive Compensation Program. 24. Consists of $11,677 for an annual car allowance, $176,096 for relocation expenses, $34,739 in tax gross-ups and $14,808 in severance pay. 25. Consists of a $16,800 annual car allowance and $12,500 for an extra week of vacation. 26. Consists of a $12,216 car allowance, $12,357 in company paid medical expenses under the Officer's Medical Program, and $8,000 in reimbursed attorney's fees in connection with the negotiation of Silverstein's employment agreement. 27. Became CEO and President in July 2006. 28. Represents a sign-on bonus per the terms of his employment agreement. 29. Consists of $51,572 for relocation assistance, $40,583 for director fees (January 2006 through June 2006), and $3,900 in annual automobile allowances. 30. Resigned as CEO in July 2006 but remained Vice Chairman and an employee through December 2006. Resigned as an employee December 2006. 31. Represents an annual guaranteed bonus under the terms of his employment agreement. 32. Consists of a $13,200 annual car allowance, $6,250 for an extra week of vacation, and $25,716 for relocation and similar expenses. 33. Consists of a $22,599 car allowance and $2,554 in company paid medical expenses under the Officer's Medical Program. 34. Resigned as Chief Marketing Officer in September 2006. 35. Consists of $296,000 in severance payments (to be paid at $24,666.67 for the 12 months following the resignation), $9,809 in automobile allowances, $1,187 in relocation costs, and $75 in airline club dues. 36. Resigned as President of Worldwide Consumer Group in December 2006. 37. Represents $70,000 paid in November 2006 and $130,000 paid in January 2007, both under the March 2006 bonus plan. 38. Resigned as President and as a member of the board of directors in February 2006. 39. Consists of $437,500 in consulting fees (February 2006 through December 2006), $5,000 for reimbursement of attorneys fees, $975 in an automobile allowance, and $9,809 in relocation costs. 40. Consists of a $16,209 car allowance and $9,454 in company paid medical expenses under the Officer's Medical Program. 41. Joined the Corporation on February 20, 2006. 42. Consists of a $17,167 car allowance and $828 in company paid medical expenses under the Officer's Medical Program. 43. Represents bonus awarded in February 2007 for performance in 2006. 44. Consists of $88,616 in relocation assistance and $7,200 for an annual automobile allowance. 45. Became Senior Vice President effective May 31, 2006. 46. Consists of $13,200 for an annual car allowance and $5,769 for an extra week of vacation. 47. Became Executive Vice President-Sales effective December 2006. 48. Represents a discretionary bonus. 49. Consists of $9,600 for an annual car allowance and $6,635 for an extra week of vacation. 50. Includes a $71,400 discretionary bonus and a $69,300 incentive bonus. 51. Became Vice President and Chief Financial Officer as of July 5, 2006. 52. Terminated his employment with the Company as of June 30, 2006. 53. Consists of $8,631 for an annual car allowance and $159,812 in severance pay. 54. Resignation effective April 10, 2007. 55. Joined the company on March 27, 2006, as Chief Operating Officer. Prior to March 27, 2006, served as a Director and Consultant with the company. His employment contract with the company terminated on December 31, 2006. 56. Director fees. 57. Resigned on March 27, 2006. 58. Resigned as Chief Financial Officer and Secretary in September 2006. 59. Resigned as President in July 2006. |
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