America's Car-Mart Profits Equal Bonuses
Last updated Thursday, August 28, 2008 6:09 PM CDT in Business
By Kim Souza
THE MORNING NEWS
SPRINGDALE -- Stronger annual profits meant more money in the pockets and retirement accounts of America's Car-Mart Inc. executives, who saw their 2008 total compensation jump an average of 126 percent from a year ago.
However, the company will not give base salary raises for 2009.
According to a proxy filed Thursday with the Securities and Exchange Commission, the company's top four executives' base salary increased an average of 7 percent from a year ago. Aside from the annual raise, it was the bonuses and stock-based performance awards that really added up -- $1.61 million paid in 2008, compared to $374,108 paid in 2007.
The company experienced a turnaround in profitability from fiscal year 2007 through fiscal 2008. The company earned $15.03 million in 2008, 257 percent more than the $4.2 million it posted in 2007. Sales revenues in the same period rose 14.5 percent.
Raises to base salary are determined in part by subjective factors such as executive's performance during the prior year, responsibilities and experience, the company said in its proxy filing.
In fiscal 2007, the executive officers did not receive an increase in base salary from the fiscal 2006 levels, the filing said. The company said in fiscal 2008, the executive officers received the following increases in base salary and bonuses.
Tilman J. "Skip" Falgout, general counsel, received a $0 increase with a base salary of $330,000 and no bonus in 2007 or 2008. Falgout stepped down as chief executive officer in October 2007 but remains chairman of the board.
CEO Hank Henderson received a $45,000 raise, a 17-percent increase with a base salary of $300,000, and a $150,000 bonus in 2008; no 2007 bonus.
Eddie Hight, chief operating officer, received a $15,000, or 8.8 percent increase, with a base salary of $185,000, and $60,035 bonus in 2008, compared to no 2007 bonus.
Jeffrey Williams, chief financial officer, received a $5,000, or 2.9 percent, increase with a base salary of $180,000 and no 2008 bonus, compared to $50,000 received in 2007.
Shareholders have also reaped the benefits of Car-Mart's stronger performance in recent months. The share price has jumped more than 47 percent in the past year, despite volatility among the financial and auto sectors.
Shares of America's Car-Mart closed Thursday at $19, up 40 cents. For the past 52 weeks, the share price has ranged between $21.33 and $9.02.
The company's solid performance was recognized by Bill Armstrong, analyst with C.L. King, who recently upgraded the company to a strong buy -- his highest rating. He credited company management with improved execution of sales, underwriting and collection. He also said the slower economic conditions should line up favorably for the company. Two reasons he gave was the company's position to seek out new customers, no longer qualifying for conventional credit, and lower prices of SUVs and pick-ups, the hottest selling vehicles on Car-Mart lots.
Aside from employment compensation, the recent proxy filing indicated the company will hold its annual shareholders meeting at 10 a.m. on Oct. 15, at the Clarion Hotel in Bentonville.
Shareholders will elect six directors to serve a one-year term. The six incumbent directors are seeking re-election.
• Falgout;
• Daniel J. Englander, age 39, has served as a director since 2007. He is the founder and currently the managing partner of Ursula Investors;
• Henderson;
• William M. Sams, age 70, has served as a director since March 2005;
• John David Simmons, age 72, has served as a director since 1986. Simmons is the president of Simmons & Associates LLC;
• William A. Swanston, age 54, has served as a director since 2006. He is chief financial officer of the DSD Dairy division of Dean Foods.
At A Glance
Stock/Option Awards For Car-Mart Executives
(These awards are also known as deferred compensation and are performance based.)
Exec. Officer 2007 2008
T.J. "Skip" Falgout $102,350 $100,350
Hank Henderson $102,350 $692,290
Jeffrey Williams $51,175 $187,659
Eddie Hight $68,233 $428,269
Total $324,108 $1.4 million
Source: Securities and Exchange Commission Form 14A filing.
Reader Comments (No comments posted.)
The following comments are provided by readers and are the sole responsibility of their authors. The Morning News does not review comments before their publication, nor do we guarantee their accuracy. By publishing a comment here you agree to abide by our comment policy. If you see a comment that violates our policy, please notify the web editor.
Not already registered?
