July 29, 2011 Minneapolis/St. Paul Business Journal | mspbj.com Special Report 15 14 Special Report Minneapolis/St. Paul Business Journal | mspbj.com July 29, 2011
CEO Company ScoreDouglas Milroy G&K Services Inc. -19William Cook Donaldson Co. Inc. -18Sally Smith Buffalo Wild Wings Inc. -18Joseph Grillo Digital Angel Corp. -17Daniel Starks St. Jude Medical Inc. -14David Martin Cardiovascular Systems Inc. -14John Coughlan Xata Corp. -13George Buckley 3M Co. -12Richard Davis U.S. Bancorp -12William Cooper TCF Financial Corp. -12Bradley Krehbiel HMN Financial Inc. -12
Joseph Dunsmore Digi International Inc. -10Thomas de Petra Winland Electronics Inc. -10Cheryl Beranek Clearfield Inc. -10William Mansfield The Valspar Corp. -4Bahram Akradi Life Time Fitness Inc. -3James Wiltz Patterson Cos. -3Bill Otis New Ulm Telecom Inc. -2Michael Hoffman The Toro Co. 1
Anthony Conway Rochester Medical Corp. 1Kenneth Aubrey Image Sensing Systems Inc. 2
James Cracchiolo Ameriprise Financial Inc. 3William Hawkins III Medtronic Inc. 3
Peter Hauser Entrx Corp. 6John Wiehoff C.H. Robinson Worldwide Inc. 7Michael Tattersfield Caribou Coffee Co. Inc. 11Christopher Twomey Arctic Cat Inc. 11Rodney Young Angeion Corp. 13Michael Carrel Vital Images Inc. 14John Finke HickoryTech Corp. 15Michael Reger Northern Oil and Gas Inc. 16Kevin Gilligan Capella Education Co. 17Willard Oberton Fastenal Co. 17Keith Stewart ValueVision Media Inc. 17James Dolan The Dolan Co. 17James Mandel Multiband Corp. 17Randall Sampson Canterbury Park Holding Corp. 17Thomas Oland Techne Corp. 17Jeffrey Berg Communications Systems Inc. 18Christopher O’Donnell Famous Dave’s of America Inc. 18
CEO Company Score
Lee Schram Deluxe Corp. 22
Chris Killingstad Tennant Co. 23
Patrick McHale Graco Inc. 23
Scott Wine Polaris Industries Inc. 24
Cary Deacon Navarre Corp. 25
Richard Braun Medtox Scientific Inc. 27
Richard Kramp Synovis Life Technologies Inc. 27
Joseph Levesque Aetrium Inc. 29
Michael Pudil WSI Industries Inc. 30
Paul Lidsky Datalink Corp. 32
Daniel Baker NVE Corp. 32
William Ulland Ikonics Corp. 34
Scott Drill Insignia Systems Inc. 35
Andrew Borgstrom Analysts International Corp. 37
Steven Wagenheim Granite City Food & Brewery 42
Mark Gorder IntriCon Corp. 42
Robert Demorest Mocon Inc. 49
Scott Crump Stratasys Inc. 50
Howard Root Vascular Solutions Inc. 56
John Morgan Winmark Corp. 58
Edward Cameron Appliance Recycling Centers of America Inc. 58
Donald Mitchell FSI International Inc. 59
Michael Degen Nortech Systems Inc. 60
Kathleen Iverson CyberOptics Corp. 73
Joseph Micallef Great Northern Iron Ore Properties 89
Jeffrey Myhre Broadview Institute Inc. 91
METHODOLOGY
In an effort to determine which of Minnesota’s public-company CEOs are “OVERPAID” and which are “UNDERPAID,” the Minneapolis/St. Paul Business Journal has evaluated 2010 CEO compensation in relation to the performance of each CEO’s company.
Those CEOs with a disparity between their own high rank in total compensation and the low rank of their company’s fi nancial performance are considered overpaid. Conversely, those CEOs who rank low in compensation and high in performance are considered underpaid. Those CEOs who place in the middle of the spectrum are deemed “APPROPRIATELY PAID.”
Companies newly public during the fi scal year of the study, as well as companies recently removed from the development stage, have special characteristics that aren’t captured by our performance metrics. These characteristics might include a stock run of less than one full year, certain special charges to earnings that long-term public companies don’t have, or the lack of prior-year revenue to plug into our formulas. With no way of developing a fair pay-performance link, we’ve delayed until next year the overpaid/underpaid-CEO debut for the following companies:
Electromed Inc., CEO Robert HansenSPS Commerce Inc., CEO Archie Black
Additionally, our methodology requires that overpaid/underpaid CEOs be in charge of their company for at least nine months during the fi scal year in question. Anything less doesn’t support a meaningful evaluation of the pay-performance link. Therefore, the following current or former CEOs are also exempt from our overpaid-underpaid list this year:
Alan Hodnik, Allete Inc.Daniel Murphy, Alliant Techsystems Inc.Lorna Nagler, Christopher & Banks Corp.Mark Lucas, Imation Corp.Bruce Barclay, SurModics Inc.
And, fi nally, the following CEO was not included due to his recent death:
John Hawkins, Hawkins Inc.
UNDERPAID CEOs
OVERPAID CEOsAPPROPRIATELY PAID CEOs
CEO Company ScoreJames Prokopanko The Mosaic Co. -67Joel Ronning Digital River Inc. -64Michele Volpi H.B. Fuller Co. -60Gregg Steinhafel Target Corp. -59Russell Huffer Apogee Enterprises Inc. -58Brian Dunn Best Buy Co. Inc. -55Craig Herkert Supervalu Inc. -49William McLaughlin Select Comfort Corp. -43Harry Debes Lawson Software -40Mark Greene Fair Isaac Corp. -40Laura Hamilton MTS Systems Corp. -40Andrew Duff Piper Jaffray Cos. -39Richard Kelly Xcel Energy Inc. -36Douglas Baker Jr. Ecolab Inc. -35Paul Finkelstein Regis Corp. -35Anthony Bihl III American Medical Systems Holdings Inc. -35Alec Covington Nash Finch Co. -34Sherman Black Rimage Corp. -34Lyle Berman Lakes Entertainment Inc. -32Kendall Powell General Mills Inc. -29Stephen Hemsley UnitedHealth Group Inc. -25Randall Hogan Pentair Inc. -24Ronald Raup MakeMusic Inc. -23Jeffrey Ettinger Hormel Foods Corp. -22Wayne Fortun Hutchinson Technology Inc. -22John Erickson Otter Tail Corp. -21
