Philip Morris International Inc., the world’s largest cigarette manufacturer, gave its CEO Louis Camilleri a reward valued at more than $20.6 million in fiscal 2010, below 16% from fiscal 2009, according to Associated Press. The pay package came in the year when the seller of popular Marlboro and other brands overseas faced its net profit increased 14.5 % to $7.26 billion and its net earnings except excise duties increased 8.7% to $27.2 billion. It sold about 4% more cigarettes.

The compensatory deal was revealed a few days ago in an annual proxy filing with the Securities and Exchange Commission. Camilleri’s wage raised 14% to $1.7 million, and he acquired a performance-based bonus of more than $7.8 million. The value of his stock options and stock awards dropped 29% to approximately $10.6 million.

Louis Camilleri was also awarded with other reward worth $488,564, which included personal flights on Philip Morris – owned planes estimated at nearly $198,013, a car benefit of $26,747 and $7,073 for private safety. For instance in 2009, Camilleri’s reward constituted $24.5 million.

Philip Morris International, which owns offices in Lausanne, Switzerland, and New York, also declared that it will conduct its annual meeting on May 11 in New York, where stockholders will elect 10 managers to its board. They also will have to elect on two stockholder proposals, including one for the enterprise to conduct a research on its marketing practices and the effect on low-profit people’s ability to money on food rather than cigarettes.

Second state-controlled China National Tobacco Corp., Philip Morris International divided in 2008 from Richmond, Va. Camilleri was CEO of Altria in 2002, when engaged on a rearrangement that brought to the spin-off of Kraft Foods Inc., and then to the division of the two cigarette manufacturers.

The Associated Press (AP) formula estimates an executive’s entire reward during the last fiscal year by adding bonuses, wages, privileges, market interest the enterprise pays on deferred compensation and the calculated value of stock and stock options awarded within the year. The AP formula doesn’t take into account changes in the present value of social security check. That makes completely different from the total presented by companies to the Securities and Exchange Commission.

The value that an enterprise set to an executive’s stock and option awards for 2010 and that the current value of what the enterprise expected the awards to be worth to the executive over time. Enterprise usually uses one of several formulas to calculate that value. However the number is not just an estimate and what an executive receives will depend on the execution of the company’s stock in the years after the rewards are given.

By Sara Norton, Staff Writer. Copyright © 2011 Cigarette-Store.org. All rights reserved.