HARTFORD, Connecticut (AP) - Ingersoll-Rand Co. chairman and chief executive Herbert L Henkel received 2008 compensation valued at $11.4 million, up about seven percent year-over-year, according to Associated Press calculations of data filed with regulators on Wednesday.

Mr. Henkel, 61, received a base salary of $1.3 million from the diversified manufacturer, up about 3.6 percent from 2007 according to a proxy statement filed with the Securities and Exchange Commission (SEC). But his performance-based bonus was cut by more than half to $1.4 million, as the Bermuda-based company's stock tumbled and it reported a hefty loss amid its worst financial year in decades.

The bulk of his compensation came in the form of stock options the company valued at $8.3 million when they were granted February 15, 2008. But those options are currently of little value since their exercise price of $39 each is double the stock's on Wednesday closing price of $19.35.

Mr. Henkel also received perks totalling $525,269, mostly in the form of contributions to a savings plan and for his use of company aircraft.

The Associated Press formula is designed to isolate the value the company's board placed on the executive's total compensation package in the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimate value of stock options and awards granted during the year.

The calculations do not include changes in the present value of pension benefits and sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the SEC, which reflect the size of the accounting charge taken for the executive's compensation in the previous fiscal year.

Ingersoll said 2008 was "to a great extent influenced by the difficult economic climate facing all global companies".

Shares tumbled 60 percent during the year, ending at $17.15. The company also posted a loss of $2.62 billion, or $8.73 per share in 2008, compared with a profit of nearly $4 billion, or $13.43 per share, in 2007.

Results for earnings per share and cash flow were below the company's 2008 annual operating plan, but return on equity performance exceeded its annual operation plan.

Based on these financial results, Mr. Henkel's $1.4 million performance-based bonus was about 36 percent below the target award level established for 2008 and 53 percent less than the actual award earned for 2007 performance, Ingersoll said.