Tyco CEO Edward Breen gets $6.2M in fiscal 2008

NEW YORK - The chairman and chief executive of diversified manufacturer Tyco International Inc. received compensation valued at $6.2 million in 2008, compared with $34.1 million in 2007, when he received hefty stock and stock options awards.

Edward D. Breen, 52, has served as chairman and CEO since July 2002.

According to a regulatory filing on Friday, his fiscal 2008 salary totaled roughly $1.6 million, which was equal to his salary in fiscal 2007. He also received a performance-based bonus of $3.3 million, which was also equal to his 2007 bonus.

His "other compensation" totaled nearly $1.3 million and included a $70,000 cash allowance and more than $250,000 for costs related to his use of the company's aircraft. It also included nearly $250,000 in contributions to his retirement plan and about $630,000 in tax gross-up payments.

The AP's total pay calculations 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. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.

Apart from his 2008 compensation, Breen realized about $2.2 million upon vesting stock awards.

For the fiscal year ended Sept. 26, 2008, Tyco reported that it swung to a profit of $1.55 billion, or $3.19 per share, from a loss of $1.74 billion, or $3.52 per share, in fiscal 2007.

But the company has since reduced its 2009 earnings forecast on falling steel prices, which are expected to cause trouble for its electrical and metal products unit that makes galvanized steel for construction in addition to other products.

The company also warned that unfavorable foreign currency translation could cut per-share earnings.

Since reaching a 52-week high of $47.95 in May 2008, Tyco's stock has lost more than 50 percent, closing at $23.18 on Friday.

Tyco, which makes everything from security systems to valves, pipes and steel tubes, is currently incorporated in Pembroke, Bermuda, and operates from West Windsor, N.J. Last month, Tyco said it plans to move its legal headquarters to Switzerland.

In its proxy filing, Tyco said it has continued to adjust its executive compensation plan to reflect the company's spin-off of its electronics and health care businesses in 2007. The health care and electronics units now trade separately as Covidien Ltd. and Tyco Electronics Ltd., respectively.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.