Defense Giant Alters Pay Plan

General Dynamics Chairman William Anders will receive up to $4.5 million in salary, bonuses and stock-related perks under a new executive bonus program.

The defense giant said Anders will get $800,000 in salary, $700,000 in cash incentive awards plus deferred stock and stock options that could be worth as much as $3 million.

The plan rewards executives with hefty stock options when they maintain a $10-per-share increase in the company’s common stock for 10 trading days.

It replaced an earlier plan that doubled executive pay for every $10 increase in stock price. The old system had paid out $17.8 million to a score of executives since it was approved in 1991, when the stock was trading at $25.56 per share. On Tuesday, General Dynamics common shares closed at $64.25, down $1.25.