CEO Refuses To Take $1.85million Bonus, says He does not deserve it

Surprisingly because the list of executives willing to forgo the extra compensation is short.

Rick Holley is CEO of Plum Creek Timber Co surprised his board of directors  who couldn't believe an executive would pass up millions as a matter of conscience.  Timber Co   PCL 0.50% , a Seattle-based real estate investment trust that owns and manages around 6.8 million acres of timberland in 19 states.

Today Holley disclosed, via a regulatory filing, that he has returned 44,445 restricted stock units back to the company because “he does not believe that he should receive such an award unless Plum Creek’s stockholders see an increase in their investment return.”

At today’s opening price of $41.80 per share, Holley’s giveback would work out to more than $1.85 million.

Holley told Fortune the board was 'surprised' when he decided to return the bonus.
 

'I told them I wasn’t asking for their approval. They had given these to me and I appreciated their confidence in me, but I didn’t feel comfortable taking them.'

The numbers, Holley said, just didn't show the strong performance he believed was deserving of a bonus. 

'This has been a year where total shareholder returns are down 10% or more,' he said. 'It just wasn’t the right thing to do.'
 

Holley likely won't be hurting financially, as the Plum Creek chief took home over $8million in 2013 and still owns stock valued at $11.8million in the company.

It’s hard to remember the last time a CEO voluntarily gave up stock as a sort of apologia to disappointed investors. Holley has been president and CEO of Plum Creek since 1994, before which he was its chief financial officer. He began his career at General Electric GE 1.91% in 1974.