CP Rail chief Hunter Harrison’s compensation rose 6% to $19.9M in 2015

Hunter Harrison, the veteran leader of Canadian Pacific Railway Ltd., made $19.9 million in 2015 – a six per cent increase even as the business’s stock price fell 22 per cent.

CP said the increase in Harrison’s total compensation was due to the fact that he’s paid in U.S. dollars. If the exchange rate had held steady from 2014, his compensation might have fallen eight percent, according to the company’s proxy statement.

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Harrison’s base salary was steady at US$2.Two million, which translated to $2.8 million in Canadian dollars compared to $2.4 million in 2014. Also, he received $4.7 million in stock awards, $5.Two million in options awards, $6 million in non-equity incentive plan compensation and $1.2 million in other compensation, such as the utilisation of the company’s private jet for personal and business trips.

CP acknowledged that Harrison’s compensation is “much greater than his peers.” By comparison, CP’s acquisition target, Norfolk Southern Corp., paid then-CEO Jim Moorman US$13.5 million in 2015.

However, CP also pointed out that Harrison’s total compensation between June 2012, when he took the task, and December 2015 is just 0.67 percent from the total additional value created for shareholders within the same period.