Huntsman quadruples Peter Huntsman's compensation to $12.1 million

Huntsman Corp., the fifth-largest U.S. chemical maker, quadrupled the pay of Chief Executive Officer Peter Huntsman to $12.1 million last year as he narrowed losses and led the company's transition to public ownership.

Huntsman, 43, received $1.4 million in salary, a $2.75 million bonus, $3.45 million in restricted stock and $226,840 in other compensation such as use of a company airplane, Salt Lake City-based Huntsman Corp. said today in a government filing. He also got 454,950 stock options valued by Bloomberg at $4.26 million. In 2004, Huntsman's compensation totaled $2.96 million.

Peter Huntsman narrowed the company's net loss to $34.6 million last year, from $227.7 million in 2004. Shares of Huntsman have dropped 17 percent since the company's initial public offering on Feb. 10, prompting Peter Huntsman to say in February he plans to spin off the commodity units so investors will place a higher value on the specialty chemicals business.

Huntsman's 2004 compensation included $1.36 million in salary, a $550,000 bonus and $1.05 million in other compensation, including use of a company plane. He received no restricted stock and no stock options.

Chairman Jon M. Huntsman, 69, the company founder and father of Peter Huntsman, received $2.4 million in compensation last year, including $950,000 in consulting fees and a $1.21 million bonus, the company said in its filing with the U.S. Securities and Exchange Commission.

Jon M. Huntsman Jr., the governor of Utah and the brother of Peter Huntsman, received $163,452 last year, mostly for personal use of a company plane.

The company pays about $195,000 monthly to lease a Gulfstream IV-SP airplane through a company owned by the chairman, Huntsman Corp. said in the filing.

Shares of Huntsman rose 26 cents, or 1.4 percent, to $19.10 at 10:21 a.m. in New York Stock Exchange composite trading, compared with $23 on its first day of trading in February 2005.

Bloomberg valued Peter Huntsman's stock options using the Black-Scholes pricing formula, a 10-year term, a stock volatility rate of 38.01 percent, a risk-free interest rate of 4.057 percent, and a strike price of $23.

Dow Chemical Co. is the largest U.S. chemical maker by 2005 revenue, followed by Exxon Mobil Corp., DuPont Co. and Lydonell Chemical Co. Huntsman's headquarters are in The Woodlands, Texas, outside Houston.