James Reda, an executive compensation consultant hired by Francine Katz’s attorneys in her sex discrimination case against Anheuser-Busch, said executive titles were ‘inflated’ by the brewer to justify higher salaries for some executives.
Katz, a former top executive at A-B, is suing the company in ºüÀêÊÓƵ Circuit Court, alleging she was paid less than other male executives because of gender discrimination.
In her lawsuit, Katz alleges her base pay after her 2002 promotion to vice president, replacing John Jacob, was $300,000, and Jacob’s base salary was $605,000 in 2001, his last full year as chief communications officer. Jacob, a former president of the National Urban League, was an A-B board member before he was hired by the brewer in 1994.
People are also reading…
Reda, who said he and his staff were paid $100,000 to analyze the documents, said that after examining 5,000 pieces of paper in recent months, he concluded that A-B added “global†and “group†to the titles of some executives so they could be paid more.
“There was selective title inflation,†Reda told jurors, adding he believed Jacob’s title — executive vice president of global communications — was inflated because Katz handled global communications for A-B. Katz was not named executive vice president when she replaced Jacob.
Reda also testified that Katz’s pay should not have been based on pay for public relations professionals at other corporations because her position was much broader, citing her testimony before Congress and her efforts overseeing anti-underage drinking and drunk-driving programs.
Live video: Katz vs. AB
“She wasn’t just a public relations person, she was a lot more than that,†he said. Reda said Katz’s base salary should have been between $400,000 and $450,000 annually instead of $300,000 to $350,000.
Katz’s attorney Mary Anne Sedey said at trial last week that Katz missed out on $9.4 million in missed compensation between 2002 and 2007, including base salary, bonuses and stock options.
A-B maintains that Katz’s pay was fair and based on the market rate for public relations professionals at other major corporations, and that it was higher than the market rate.
A-B attorney Gabriel Gore introduced evidence Monday showing Katz was paid more than public relations executives at other major companies. In 2003, for example, Katz received more than $1.5 million in total compensation, including a bonus and stock options, which was more than the median compensation of $524,000 for PR executives that year,according to Gore.
In testimony Friday, former CEO August Busch III denied g salaries at A-B.
On Monday , Patrick Stokes, CEO of A-B between 2002 and 2006, testified the company had discretion when setting executive salaries.
“It’s really all PR,†Stokes said of Katz's duties at A-B.
Former CEO August Busch IV is expected to testify today.