Mondi Group, Europe’s largest maker of office paper, cut Chief Executive Officer David Hathorn’s pay by 4.1 percent last year as his bonus was reduced, even as profit rose and the dividend increased.
Hathorn, 49, earned 1.77 million pounds ($2.81 million) in 2011, which included base pay of 800,000 pounds, a bonus of 468,480 pounds and deferred stock valued at the same amount, Johannesburg-based Mondi said in an e-mail. That compares with a total package in 2010 of 1.85 million pounds, which included salary of 775,000 pounds and a bonus and deferred shares each worth 517,313 pounds. Hathorn is paid in the U.K. currency.
Mondi employees’ average pay increase in Europe was 4 percent, with a 7 percent raise in South Africa, the company said in its annual report posted yesterday. Underlying operating profit in 2011 rose 36 percent to 622 million euros ($823 million) and net debt fell 39 percent to 831 million euros. Mondi plans to increase the dividend 30 percent to 26 euro cents a share.