Sunoco CEO 2007 compensation worth $8.57M

March 17, 2008 3:28:38 PM PDT
The chief executive of Sunoco Inc. received a 2007 compensation package worth $8.57 million, up 5 percent from the prior year, according to a federal filing on Monday. The Philadelphia-based oil refiner and marketer gave John Drosdick a salary of $1.2 million, bonus of $1.8 million, and other perks worth $165,473 that include use of the company aircraft, life insurance benefits and parking at corporate headquarters.

In addition, Drosdick got $5.4 million worth of stock and option awards based on the day they were granted, the Securities and Exchange Commission filing showed.

On Monday, shares of Sunoco hit a new 52-week low of $47.93 before closing up slightly to $48.92 - down 6.4 percent, or $3.35 per share.

As crude oil prices have risen, refiners such as Sunoco have been paying record prices but have struggled to pass on the cost of its finished products, such as gasoline, to customers.

In the fourth quarter, Sunoco posted a loss of $9 million, or 8 cents per share, compared with a profit of $123 million, or $1 per share, during the same period a year earlier. Excluding special items, Sunoco posted earnings of $23 million, or 20 cents per share.

Revenue jumped to $13.16 billion from $9.04 billion a year ago but margins got squeezed due to higher costs.

Drosdick did not exercise any stock options in 2007 but 126,560 common stock units vested with a value of $9.3 million. Each common stock unit gives the owner the right to receive one share of Sunoco common stock or cash equivalent, plus dividends accrued from date of grant.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.