CEO gives back bonus, says he doesn't deserve it

[mfcorey1]

Well, here’s something you don’t see too often. Or maybe never…

Rick Holley is CEO of Plum Creek Timber Co. PCL, a Seattle-based real estate investment trust that owns and manages around 6.8 million acres of timberland in 19 states. Today Holley disclosed, via a regulatory filing, that he has returned 44,445 restricted stock units back 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.”

At today’s opening price of $41.80 per share, Holley’s giveback would work out to more than $1.85 million.

To be sure, it’s been a rough 18 months for Plum Creek shareholders. The stock hit an all-time high of $54.04 per share on May 12,2013, before falling as low as $39 per share on October 1, 2014. Revenue has also been nearly flat over the past two years, while net income is expected to fall in fiscal 2014. That said, it’s hard to remember the last time a CEO voluntarily gave up stock as a sort of apologia to disappointed investors.

Holley has been president and CEO of Plum Creek since 1994, before which he was its chief financial officer. He began his career at General Electric GE in 1974.

http://www.msn.com/en-us/money/companies/ceo-gives-back-bonus-says-he-doesnt-deserve-it/ar-BBgY4fF?ocid=mailsignout

[Major Nikon]

1. The previous year he made over $8 million

Sounds more like a wise investment in the gravy train.

[darkangel218]

2. He is probably worth millions already, so one million is nothing for him.

Don't think he is making some sort of sacrifice for the common good of the investors.

[unblock]

3. color me cynical

i have a sneaky feeling that this is part of a larger deal, and holley will make a mint if and when the stock rises.

[Odin2005]

4. LOL, false modesty.

[mythology]

5. It's a good start

More CEOs should be doing this. We also need to look at the general rate of CEO compensation, but this is a start.