USA: Anheuser-Busch chairman August Busch III received $12.8 mil in compensation

Anheuser-Busch Cos. Inc. Chairman August Busch III, who retired last year as the brewer struggled amid flat beer sales, received an estimated $12.8 million in total compensation during 2006, according to a regulatory filing, Associated Press reported March 12.

Busch was also paid $37 million in pension benefits he earned over 49 years with the company, according to the filing. Since retiring, he has also received $27.8 million from nonqualified deferred compensation accounts.

Busch III retired Nov. 30, 2006, one day before his son August Busch IV became chief executive of the firm. The nation's biggest brewer reported profit of $1.97 billion last year, up from $1.74 billion in 2005.

Busch III received a base salary of $973,000, a bonus of $1.2 million, stock options and awards with an estimated value of $10.4 million, $158,900 in pension and deferred compensation, and $137,000 in all other compensation through Dec. 31, 2006, according to the company's annual proxy filing with the Securities and Exchange Commission.

Anheuser-Busch President and Chief Executive Patrick Stokes also retired last year.

Stokes received executive compensation valued at $6 million. He received a base salary of $1.4 million, a bonus of $3 million, $1.4 million in pension and deferred earnings, and $231,000 in all other compensation through Dec. 31, 2006, according to the proxy filing.

Both Busch III and Stokes will be retained as consultants with Anheuser-Busch and they will remain on the company's board, according to the filing.

Busch III won't be paid for his consulting services, but the company will pay $950,000 annually to give him an office, use of a company jet and other expenses associated with the consulting. Busch III will remain a consultant until Dec. 1, 2012.

Stokes will be paid $750,000 for his consulting work and Anheuser-Busch will pay $300,000 annually for his office and transportation costs associated with the work. Stokes will remain a consultant until Aug. 31, 2009, although he and the company will have the right to terminate his contract beginning March 1, 2008.

Busch III has already received a lump sum payment of $37 million in pension benefits, according to the proxy. Busch III, who is 69, has been a director since 1963. He was chairman of the board from 1977 until his retirement. He was president of the company from 1974 until June 2002.

In addition to the $64.8 million he has already received in retirement benefits, the company will pay him $1.6 million in retirement benefits in June and $255,000 in remaining benefits over the next four years.

While Anheuser-Busch has remained profitable, the company has struggled since 2005 to boost sales as consumers increasingly turn to wine and hard liquor. By far the market leader, Anheuser-Busch controls roughly 50 percent of the U.S. beer market.

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