The CEO of a timber company received a bonus worth nearly $2 million, but he decided to do something a little different with the money.
Plum Creek Timber CEO Rick Holley gave back 44,445 restricted stock units, worth $1.85 million, to the company because “he does not believe that he should receive such an award unless Plum Creek’s stockholders see an increase in their investment return,” according to a Securities and Exchange Commission 8-K filing.
“Nonetheless, Mr. Holley remains fully committed to Plum Creek and intends to lead the company through this challenging and prolonged economic cycle,” according to the filing.
Plum Creek’s stock has struggled to regain an upward momentum and its revenue has been nearly flat for two years, while net income is expected to fall this fiscal year, Fortune.com reports.
However, Holley, who has been president and CEO of Plum Creek since 1994, said the company’s board of directors was surprised by his decision: “I told them I wasn’t asking for their approval. They had given these to me and I appreciated their confidence in me, but I didn’t feel comfortable taking them.”
“This has been a year where total shareholder returns are down 10 percent or more,” he added. “It just wasn’t the right thing to do.”