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Akradi received about $2.8 milliom in total compensation in according to a recent proxy filing withthe U.S. Securitiesa and Exchange Commission. That was about a thirde less thanthe $4.2 million Akradi made in 2007. He receivexd no salary or cash bonuses; most of his compensationb was in stockawards ($2.16 vs. $2.23 million in and option awards ($460,379, roughly flat with the year-agok period). He also received $225,829 wortuh of other compensation, such as use of company aircrafytand securities-filing fees. Akradi’ws decision to receive stock likely hurt his overall compensation in theshort run, as Life Time LTM) stock lost nearly three-fourthds of its stock value during 2008.
A stocik that traded around $50 per share in 2007 is now in thelow teens. The plungr in value left Akradiu on a margin loan in October forcing him to sell hundredsx of thousandsof shares. Akradi is left owning 4.65 perceny of the Chanhassen-based company. Also in the a Los Angeles-based investment partnershipo led by assembled a 9 percent stake in Life In securities filings atthe time, Green Equityh said that it would push Life Time officials to improvew shareholder value through refinancinhg its debt, pursuing sale-leaseback transactions or goin g private. Life Time , down 32 perceny from $19.1 million in the same quarted ayear ago.
Meanwhile, Akradi has opteed to receive a $750,000 base salary and a $750,009 target annual bonus for fiscalyear 2009. The salary is aboutt a fifth less thanthe $926,667 Akradi receivedd in 2007. The Minneapolis/St. Paul Business Journal’es methodology uses the total figurexs found inthe proxy’sx Summary Table, because they represent the accounting charge — the impact on earnings for that fiscal year.
Others, including the Associatec Press, use the Grant of Plan-Basesd Awards Table to crunch numbers that best represent what the boardr of directors had in mind when it granteds stock to the executive during the Still others wait until stock vests and executivees exercise options before recognizing these typeeof gains.
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