Saturday, December 10, 2011

Overcompensating?

Johnson Controls reported record sales for the fiscal year ending September 30, 2011. Sales rose 9% in 2011. Earnings rose 19%.

As of September 29, 2010 Johnson Controls stock price was $25.94. One year later, September 29, 2011, the price was $27.40. This was a 5.6 percent increase.

As of December 9, 2010 Johnson Controls stock price was $37.93. One year later, December 9, 2011 the value was down to $31.95. A 15.8 percent decline.

The highest stock price for Johnson Controls, over the past 10 years, was October 22, 2007 at $42.74. Recently, July 11, 2011, the stock price reached $40.85. Considering the current value ($31.95), Johnson stock has seen a 21.8 percent decline since July 2011.

[On March 2, 2009 the stock was down to $9.13, the lowest since September 18, 2000 when it was $7.98.]

Steve Roell, Johnson Controls CEO, saw his total compensation increase from $17.56 million to $22.34 million for 2011. A 27.2 percent increase.

I'll let you decide whether this is a fair compensation. Or, whether "we're broke" and the rich "job creators" are unable to pay a small percentage more in taxes.

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