NEW YORK, Mar 01, 2012 (Dow Jones) -- Alcoa Inc. (AA) cut the performance-based cash compensation of Chief Executive Klaus Kleinfeld by 45% in 2011 because of a steep decline in the aluminum maker's share price.
But Kleinfeld's total compensation package increased because of a 2.9% raise in salary and a decrease in borrowing costs that boosted his pension, the company said in a filing on Thursday.
The raise in base salary, which took effect in March, was the first since Alcoa froze salary increases for salaried employees in 2008. Kleinfeld, 54, was paid $1.43 million in base salary in 2012.
Including stock, incentives, pension and other benefits, Kleinfeld received compensation last year valued at $14.04 million, up 6% from $13.29 million in 2010.
Alcoa, the largest U.S. producer of the lightweight metal, saw its shares slump during the second half of 2011 as worries about flagging global growth slammed aluminum prices. Shares fell 43% during the year, closing on Dec. 30 at $8.65.
As a result, Alcoa's board of directors compensation committee reduced Kleinfeld's cash incentive compensation by 45%, to $1.51 million.
Alcoa shares were recently up 0.6% at $10.23, after rising 18% this year through Wednesday's close.