March 24, 2010 - Reynolds American Inc.(RAI) CEO Susan M. Ivey made $16.2 million last year, about 84 percent more than the previous year (Ivey's compensation was valued at $8.8 million in 2008) as the nation's second-biggest tobacco company struggled with declines in cigarette demand, according to a calculation by The Associated Press based on government filings. Ms. Ivey has been President and Chief Executive Officer of RAI since January 2004, and was elected the Chairman of the Board of RAI effective January 1, 2006.Last year, the maker of Camel and Pall Mall cigarettes, and Kodiak and Grizzly smokeless tobacco saw its profit fall about 28 percent as revenue fell by 4.8 percent. The cigarette maker raised prices to offset sales volume declines it blamed on the economy and a 62-cents-per-pack federal tax increase that began in April. During the year, Reynolds dealt with several factors that contributed to a sales decline. Some were related to consumers smoking less and buying discount brands in response to higher state and federal excise taxes, and also having less disposable income.
In 2009 R.J. Reynolds’ total cigarette volume declined 8.7%, compared with the industry decline of 8.6%. With respect to cigarette market share, R.J. Reynolds’ full year share was essentially flat at 28.3%, as overall growth brand gains largely offset declines in support and non-support brands. (Highlights - Reynolds American Inc. q4 2009 and full year earnings..)
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References:
Reynolds' Ivey Made $16.2 Million in 2009 Cigarette maker Reynolds American CEO Ivey's compensation jumps to $16.2 million in 2009 by MICHAEL FELBERBAUM, AP Tobacco Writer, Associated Press, 3/22/2010; Top Reynolds American executive gets big bump in compensation by Richard Craver, Winston-Salem Journal, 3/22/2010.
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