Mark Mondello, CEO of Jabil Inc., received total compensation of $11.4 million in fiscal year 2018, a 3.9 percent decrease in his pay package of $11.9 million in the prior year.
While he got a bump in salary and the value of his stock awards increased, his cash incentive payments were lower in FY2018 than in FY2017, according to a proxy filed late Monday with the U.S. Securities and Exchange Commission.
Jabil (NYSE: JBL), a St. Petersburg-based electronics manufacturing and services firm and the second largest public company in the Tampa Bay area, ends its fiscal year on Aug. 31 and often is the first local company to report executive pay, a subject that’s closely watched by workers and industry peers. Jabil is also sometimes viewed as a bellwether for Apple Inc. (NASDAQ: AAPL), because it makes components for Apple’s iPhone and other products. Apple accounted for 28 percent of Jabil’s sales in fiscal 2018.
Because the company’s fiscal year does not coincide with the calendar year, this is the first time Jabil has had to meet a new requirement, showing the ratio of CEO pay to the annual total compensation of the company’s median worker. Mondello’s total compensation for FY 2018 was 2,238 times the total pay of $5,091 received by the median worker at Jabil, the proxy said. But it also added some context, saying that more than 94 percent of its workers are employed outside of the United States and the company’s pay is competitive in the markets in which it operates.
Like most publicly traded firms, Jabil ties executive compensation to the company’s performance. The company had a strong fiscal 2018, the proxy said, with $22.1 billion in revenue, a 15.9 percent increase from the prior year, and gains in core earnings and core return on invested capital, which are both key measures in determining executives’ cash incentive pay.
Stock awards vest based on the company’s earnings-per-share growth targets over three years. Jabil’s stock has ranged between $17 and $32 in the past three years, falling back recently after several other Apple suppliers warned about reduced orders from “a major customer.”
Mondello’s total pay package for FY 2018 included $1.15 million in salary, up from $1.1 million a year earlier; stock awards, which vest over time, that were worth $8.5 million when they were granted; a cash incentive payment of $1.8 million, and about $16,000 in other compensation.
Mondello is one of the highest-paid CEOs in the Tampa Bay area, but an analysis showed his FY 2018 compensation was about 2 percent below the median for similar companies, the proxy said.
Other executive officers at Jabil and their pay packages also are listed in the proxy. They are:
Forbes Alexander, who retired as chief financial officer on Aug. 31, $3.7 million in total compensation in FY 2018, compared to $4.5 million in FY 2017.
William Peters, who will retire as president on Dec. 31, $3.7 million in total compensation in FY 2018, compared to $4.5 million a year ago.
Kenneth Wilson, executive vice president and CEO of Greenpoint, a division that makes plastic and metal parts for consumer and mobile products, including Apple’s iPhone, $3.1 million in FY 2018
Steven Borges, executive vice president and CEO of Jabil’s healthcare division, $3.09 million
Neither Wilson nor Borges were executive officers before FY 2018, so their compensation is not listed for earlier years.
Jabil shareholders will be able to cast advisory votes on executive compensation at the company’s annual shareholder meeting Jan. 24, at its corporate headquarters in St. Petersburg. More than 98 percent of the votes cast on the say-on-pay proposal at the annual meeting in January 2018 were for approval of executive compensation.