Molson Coors execs take pay cuts

Molson Coors Brewing Co. executives took pay cuts amid last year's slump in results, with chief executive Peter Swinburn's total remuneration slipping 18 per cent to $7.76 million US.

The 58-year-old's pay package dipped from $9.45 million, primarily because of lower cash and stock bonuses.

Molson Coors, which reports in U.S. dollars, said Swinburn's base salary increased to $941,667 from $875,000 in 2009, according to a proxy circular released ahead of its annual meeting in Montreal on May 25.

It subsequently increased to $1.07 million on April 1. However, stock awards and cash incentives decreased to $4.16 million from $5.6 million a year earlier.

Stock options increased slightly to $1.5 million, while pension changes and deferred compensation decreased to $690,500 from $1.3 million. Other payments increased to $384,400 due to travel being inadvertently excluded last year.

The beer industry has faced lower sales volumes due to the impact of the global recession. Molson Coors sold 18.6 million hectolitres of beer last year, down 1.7 per cent from 18.8 million in 2009.

Income from continuing operations decreased 8.4 per cent to $668.1 million from $729.4 million despite a seven per cent rise in revenues to $3.25 billion.

Molson Coors increased its share of the Canadian beer market by nearly one percentage point last year despite a slip in sales volume. It remained the second-largest brewer with about 40 per cent market share.

Coors Light was the top-selling brand with 14 per cent market share, while Canadian was No. 3 with eight per cent, the brewer said in its annual report.

About 56 per cent of Molson Coors beer is sold in bottles, 34 per cent in cans and 10 per cent in stainless steel kegs. About 40 per cent of industry sales are between May and August.

Molson Canada CEO David Perkins's remuneration decreased to $3.56 million from $4 million in 2009.

His base salary increased to $632,000 but stock awards decreased to $630,000 from $1 million. Non-equity incentives, stock awards and pension changes/deferred compensation all increased.

Other compensation was down by $574,000 from 2009, when he was appointed to head the Canadian division.

Chief financial officer Stewart Glendinning's total remuneration decreased to $2.58 million from $3.15 million in 2009.

Molson Coors chairman Peter Coors earned $3.8 million in 2010, up from $3.76 million, mainly due to an increase in other compensation.

His base salary was unchanged at about $850,000.