Is this a Christmas miracle?
It’s not often you see the CEO standing up and saying he doesn’t deserve his bonus, but that’s exactly what Rick Holley, CEO of Plum Creek Timber Co. has done.
According to a regulatory filing, Holley disclosed he returned 44,445 restricted stock units back to the business, because “he does not believe that he should receive such an award unless Plum Creek’s stockholders see an increase in their investment return”.
The full statement reads:
The award, which would have vested entirely on February 3, 2017, was made to Mr. Holley as incentive for him to remain in his position as chief executive officer for the next several years.
However, in light of prevailing economic conditions, Mr. Holley elected to return the restricted stock units because he does not believe that he should receive such an award unless Plum Creek’s stockholders see an increase in their investment return. Nonetheless, Mr. Holley remains fully committed to Plum Creek and intends to lead the company through this challenging and prolonged economic cycle.
At the company’s opening price of $41.80 per share, this return is worth around $1.85 million, reported Fortune.
Holley told Fortune the board was surprised when he told them what he was doing, but that he wasn’t asking for their approval on the matter.
“I appreciated their confidence in me, but I didn’t feel comfortable taking them… This has been a year where total shareholder returns are down 10% or more. It just wasn’t the right thing to do.”