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Emerson CEO's pay rises to $15.6 million, 425 times what median worker earns

Emerson CEO's pay rises to $15.6 million, 425 times what median worker earns

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Emerson Chief Executive David Farr was rewarded with nearly $11 million in performance shares last year, bringing his total pay to $15.6 million.

That's a 24 percent increase from fiscal 2017, Emerson's proxy statement shows. 

Farr's pay is 425 times what a median employee earns, Emerson disclosed for the first time. That is the highest pay ratio reported so far by a St. Louis company, topping Centene's ratio of 379.

Emerson estimated that its 76,726 employees earn a median of $36,791.

Emerson issued a statement Monday noting that 91 percent of Farr's pay was tied to performance. It said his compensation "reflects the responsibilities of running a global company and the 18 years of experience and leadership as CEO in developing and executing strategies that have contributed to the strong financial performance of the company over the past year."

Farr earned a salary of $1.35 million after a 3.5 percent raise. His bonus came to $2.7 million and perquisites totaled $449,050. The latter figure includes $359,483 for personal use of company planes. His other perks include financial planning, security services, a company car, club fees and event tickets, but none of those were itemized.

The performance shares' final value will depend on Emerson's earnings and cash flow between 2018 and 2020. A similar award from 2016 earned Farr $10 million worth of stock last month, which was 97 percent of its target value.

Emerson's earnings per share, before unusual items, rose 24 percent in fiscal 2018, which ended Sept. 30. Its share price climbed 22 percent.

(Updated Dec. 18 to include statement from Emerson.)

Here's what 30 St. Louis CEOs earned in 2017:

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