AUSTIN — Hormel Foods Corp. CEO and President Jeffrey Ettinger had his biggest year leading Austin’s largest company, at least in terms of overall earnings.

The Minneapolis Star Tribune reported that Ettinger made just over $13 million — his largest compensation package ever — in Hormel’s fiscal 2014, which ended in October.

The Star Tribune’s Patrick Kennedy reported Ettinger’s base salary remained the same and his annual incentive bonus was down $632,000 from last year. However, his take-home compensation rose 88 percent largely from the $8.3 million worth of previously issued options that he exercised during the year. His stock option gains come in part from the stock appreciation during his tenure. During the last fiscal year, Hormel’s stock rose 26.1 percent, and during his time as CEO, Hormel’s stock has a total return of 236 percent, or a total annualized return of 16.1 percent.

The company set another record in 2014 with $9.3 billion in sales — up 6 percent from 2013 — and 2014 net earnings reached a record $602.7 million, up 15 percent from $526.2 million last year.

In the fiscal fourth quarter, Hormel’s $2.5 billion in sales and $171.3 million in fourth-quarter net earnings — up 9 percent from $157.3 million last year — fell short of some analyst’s projections.

Under Ettinger, Hormel has grown through acquisitions, innovations and a diverse portfolio, and 2014 was no different. After a $700-million acquisition of Skippy peanut butter grabbed international headlines in 2013,Hormel acquired CytoSports Holdings, the makers of Muscle Milk, in 2014.

Ettinger joined Hormel in 1989, and the company named him president of Jennie-O Turkey Store in 1999, according to hormelfoods.com.

Ettinger is a native of Pasadena, Calif. He and his wife, LeeAnn, live in Austin and have four children.

 

Jeffrey Ettinger’s 2014 salary

Total compensation: $13,005,596 for the year ended Oct. 31

Salary: $1,000,220

Bonus: $300

Non-equity incentive pay: $3,615,950

Other compensation: $57,876

Exercised stock options: $8,331,250

New stock options: 331,900

Total fiscal 2014 shareholder return: 26.1 percent

—Source: Minneapolis Star Tribune

 

Ettinger’s total compensation:

2014: $13,005,596

2013: $9,256,203

2012: $8,074,113

2011: $8,963,240