Danaher Chief's Compensation Topped $46 Million Last Year

Danaher, the District conglomerate founded by brothers Steven M. and Mitchell P. Rales, last year paid chief executive H. Lawrence Culp Jr. $46.2 million, including $41 million in stock and options and $5 million in salary, bonus and other compensation, such as use of the company's private plane, according to the company's proxy statement.

Culp's 2006 compensation represents a fraction of the wealth he has accrued since arriving at Danaher in 2001. He has 2,268,000 vested options of Danaher stock, with a present value that would earn him more than $100 million before taxes if he sold the stock today, according to the proxy.

Culp earned a pretax profit of $21.2 million last year when 400,000 shares of Danaher stock vested, according to the proxy. He sold 382,000 of those shares, based on other company filings with the Securities and Exchange Commission.

A company spokesman declined to elaborate on the filings.

Danaher has 45,000 employees around the world and manufactures a variety of products including wrenches, submarine periscopes and dental tools.

Last year, Danaher's profit rose 25 percent, to $1.1 billion from $898 million in 2005. Revenue grew 20 percent to $9.6 billion. Culp said recently that his goal is to reach $25 billion in sales by 2012.

Since taking over in May 2001, Culp has bought more than 30 companies and doubled Danaher's market value. His purchases, which include dental products company Sybron Dental Specialties for about $2 billion, have expanded Danaher's presence in the medical and dental industries.

Culp, 43, had not received a stock award from the company since 2003. His award of $41 million includes $21 million in stock options that vest in five years and $20 million in direct stock awards, which vest in six years.

Danaher paid Culp a salary of $1.1 million and a bonus of $3.5 million. The rest of his compensation totaled $424,746, including $15,000 toward his 401(k) plan, $160,000 to his account in the executive deferred incentive program, $5,180 in term life insurance premiums, $149,825 for personal use of the company plane and $62,196 for club memberships. The company also paid for a car, parking fees, tax preparation and financial planning services.

Danaher was founded by the Rales brothers, who are well known in the Washington region and are two of the wealthiest people in the United States, with an estimated worth of $2.2 billion each.

Steven Rales, 55, is chairman of the Danaher board; Mitchell, 50, is chairman of the executive committee. Together, they hold about 20 percent of the company's 308 million shares of common stock.

Danaher stock started 2006 at $55.70 and finished the year at $72.44, a 30 percent increase. Danaher shares closed at $70.53 yesterday, down 45 cents.