Thursday, October 31, 2019

Louisville, Kentucky-Based Brown-Forman Corp's Top-Tier Executives Average Annual Pay and Employee Benefits Increase Was a Very Robust 13.0% Per Year During the Most Recent Ten Years

The State of Kentucky is holding its 2019 Governor's election on November 5, 2019.

Thus I think it would be helpful to research the extent of income inequality expansion in the State of Kentucky in the most recent years.

So far in my research of large US Corporations I have shown that their Top-Tier Executives have been rewarded continually with just enormous annual increases in pay and employee benefits, mostly stock equity compensation, even to the extent that the key issue to US citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

There have been many US Government laws enacted in the past two decades that have substantially increased income inequality expansion including the year after year after year of annual furtive tax extenders of predominately special interests additional tax loopholes, which both the Democratic and Republican Establishments voted for under the radar screen every year just before calendar year end, but nothing was even close to being more income inequality expanding than the Trump Tax Cuts Act.

On the other hand, the only highly effective US Government law enacted by either party in the past two decades that has substantially reduced income inequality expansion is Obamacare.

My objective is to get a better handle on just why the US has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay and employee benefits percentage increases for the executives of a Company vs the many non-executive employees of a Company, coupled with the stock price appreciation subsequent to the time the company executives were rewarded in their pay with stock equity compensation.

In my study here of large Kentucky Companies I will be doing this research by largest stock market capitalization and thus the third Kentucky Company I am addressing here is Brown-Forman Corp.

From annual compensation information contained in Company Proxy Statement filings with the US Securities and Exchange Commission, the table below shows Brown-Forman Corp's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the most recent ten years.
   
Brown-Forman's Top-Tier Executives Average Annual Pay and Employee Benefits Increase was 4.1% per year during the most recent three years and a very robust 13.0% per year for the most recent ten years.
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
April April April April April April April April April April
Brown-Forman Corp 2019 2018 2018 2017 2017 2016 2016 2015 2015 2014
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Whiting CEO           3,696           2,378           2,378           1,921    
Morreau CFO           3,065           2,947           2,947           2,895           2,895           3,029           3,029           2,975           2,975           2,039
McCallum Chief Brands Officer           2,579           2,775           2,775           2,519           2,519           2,639           2,639           2,906           2,906           2,630
Hamel General Counsel   N/A   N/A 
Hinrichs SVP International Division  N/A   N/A 
Varga Former Chairman and CEO  N/A   N/A            8,827           8,865           8,865           9,615           9,615        11,017        11,017        12,259
Jones Former EVP           2,504           2,424           2,424           2,772           2,772           2,605           2,605           1,913
Welch Vice Chair           2,967           2,238
 Totals        9,340       8,100     19,431     18,624     16,703     18,055     18,055     19,503     22,470     21,079
Annual % Change vs Prior Year 15.3% 4.3% -7.5% -7.4% 6.6%
3 Year Average Per Year % Change 4.1%
5 Year Average Per Year % Change 2.3%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
April April April April April April April April April April
Brown-Forman Corp 2014 2013 2013 2012 2012 2011 2011 2010 2010 2009
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Morreau CFO           2,039           1,922    
McCallum Chief Brands Officer           2,630           3,020           3,020           2,211           2,211           1,990           1,990           2,254           2,254           1,270
Hamel General Counsel            1,346           1,488
Varga Former Chairman and CEO        12,259           9,321           9,321           8,150           8,150           7,080           7,081           7,696           7,696           4,016
Jones Former EVP  N/A   N/A     
Welch Vice Chair           2,238           2,726           2,726           2,277           2,277           2,086           2,086           2,554           2,554           1,481
Berg Retired CFO           3,202           3,133           3,133           2,638           2,638           2,224           2,224           2,411           2,411           1,330
 Totals      22,368     20,122     18,200     15,276     15,276     13,380     14,727     16,403     14,915       8,097
Annual % Change vs Prior Year 11.2% 19.1% 14.2% -10.2% 84.2%
5 Year Average Per Year % Change 23.7%
10 Year Average Per Year % Change 13.0%


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