Stanley Black & Decker, Inc. Investor files Lawsuit against Directors over Executive Pay

Sept. 21, 2011 - PRLog -- An investor of Stanley Black & Decker, Inc.  shares filed a lawsuit against the Black & Decker's board over alleged breaches of fiduciary duties by giving certain company executives allegedly excessive raises despite that shareholders explicitly rejected them.

If you are a current long term investor in Stanley Black & Decker, Inc.  stock, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges defendants breached their fiduciary duty in connection with grants of excessive executive compensation for 2010 and the failure to rescind such grants in response to the negative shareholder vote on Aril 19, 2011.

The Stanley Black & Decker's board decided to increase its Chief Executive Officer's pay by over 240% to $32.7 million, including a one-time grant of 325,000 shares of stock valued at $18.7 million. In fact Stanley Black & Decker Chief Executive Officer's pay rose from $6.05million in ‘08 to $32.73million in 2010. Its CFO’s pay rose from roughly $813,000 in ‘08 to $5.75million in 2010, its Senior Vice President’s pay rose from $1.22million in ‘08 to $6.09million in 2010, and its Executive Vice President and COO’s pay rose from $2.67million in 08 to $19.24million in 2010.

However, Stanley Black & Decker's shareholders recently expressed their disdain for the executive pay packages by voting “no” on Stanley Black and Decker's say on pay provision. Stanley Black & Decker received only 39% support for its pay practices at its April 19 annual meeting, according to a company filing.

The plaintiff also alleges that the lawsuit arises “from the board’s grant of excessive compensation to the company’s top executive for 2010 despite terrible corporate performance”.  Even though Stanley Black & Deckers annual Revenue rose lately, its Net Income fell over the same time frame. In fact Stanley Black & Decker almost doubled its 12months Total Revenue over the past four annual filing periods. Stanley Black & Decker, Inc. reported $4.36billion for 2007 and $8.409 billion for 2010. Shares of Stanley Black & Decker, Inc.  increased from as low as $23.56 in March 09 to $77 in April 2011. However, its Net Income fell over the same time frame from $320.6million for 07 to $198.2million for 2010.

Since April 2011 SWK shares fell to slightly above $54 per share on September 12, 2011.

Those who are current long term investors in Stanley Black & Decker, Inc.  stock, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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