Tag Archive | "compensation"

GM CEO Barra Received $16.2 Million in 2014 Compensation


General Motors Co Chief Executive Officer Mary Barra, who last year became the first woman to lead a major U.S. automaker, received $16.2 million in 2014 compensation, up 78 percent from her predecessor’s total the previous year, reported Reuters.

Most of Barra’s compensation is tied to stock awards that she cannot cash in yet. She received $4.55 million in salary and other liquid compensation for 2014, GM said in a proxy filed on Friday with the U.S. Securities and Exchange Commission.

Barra, 53, replaced Dan Akerson, now 66, as CEO in January 2014. Akerson’s 2013 compensation was $9.1 million.

Barra was paid $5.2 million in cash and stock in 2013, when her title was executive vice president and she headed global product development.

Detroit-based GM is now linking executive compensation more closely to performance, as other big companies have done, as it moves beyond the more restrictive guidelines it followed after its 2009 U.S. government-led restructuring.

Barra and other top GM executives attained 74 percent of the company’s targets for profit, automotive cash flow and global market share and quality. The quality metric included “customer enthusiasm” and loyalty, as well as warranty expense.

Soon after Barra’s ascension to CEO, GM became embroiled in a massive recall of older vehicles with faulty ignition switches that have been linked to at least 87 deaths. She testified several times before Congress to explain GM’s botched response which included an 11-year gap before the recalls.

GM’s board of directors chose not to award discretionary bonuses to any of its top executives last year.

Ford Motor Co also changed leaders last year as Mark Fields replaced Alan Mulally, who was largely credited with helping Ford avoid the bankruptcies that in 2009 ensnared GM and what was then Chrysler, now Fiat Chrysler Automobiles.

Fields, who became CEO in July 2014, received $18.6 million in compensation for last year, and Mulally was compensated for the full year to the tune of $22 million. Ford Executive Chairman Bill Ford made $15.1 million.

FCA Chief Sergio Marchionne received compensation valued at about $38 million based on currency exchange rates at the end of last year.

GM’s annual meeting will be held on June 9 in Detroit. Shareholders will consider company nominee Joseph Jimenez to join the board. Jimenez, 55, is CEO of Novartis AG.

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Ford CEO Fields Received $18.6 Million in 2014 Compensation


Ford Motor Co Chief Executive Officer Mark Fields made $18.6 million in salary and other compensation last year, below the $23.2 million that predecessor Alan Mulally received in 2013, the company said on Friday, reported Reuters.

Last year’s compensation for Fields, 54, was for half the year as CEO and half as chief operating officer. For 2013, he made $10.2 million as COO.

Mulally, who was replaced by Fields on July 1, made $22 million in salary and other compensation for 2014. Ford’s board decided he deserved a full year’s worth of stock awards because the company felt his impact for the full year, a spokesman said.

Earlier this month, Fiat Chrysler Automobiles said its CEO, Sergio Marchionne, received 31.3 million euros (about $38 million at end-2014 exchange rates).

General Motors Co has said its CEO, Mary Barra, would make about $14.4 million for 2014. The company has not yet disclosed her specific 2014 compensation.

Fields, Marchionne and Barra will have their compensation compared with that of unionized assembly line workers ahead of and during this summer’s labor talks with the United Auto Workers.

The Center for Automotive Research last week estimated that Ford labor costs for each of its U.S. union workers averaged $57 per hour, including benefits. Hourly pay is between $15.78 and $28.50 for Ford line workers.

Ford Executive Chairman Bill Ford made $15.1 million in 2014, up from $12 million in 2013.

“We remain absolutely committed to aligning executive compensation with the company’s business performance and to tying a significant portion of executive compensation to long-term shareholder value,” the company said in a statement.

Ford executives are compensated in part on meeting performance targets. The company achieved 91 percent of the targets last year, compared with 112 percent in 2013. It surpassed targets for automotive cash flow, Ford Credit earnings and quality, but missed on automotive revenue and operating profit margin.

The company’s pretax profit in 2014 was $6.3 billion, down from $8.6 billion the previous year, while net income fell to $3.2 billion from $7.2 billion. North American pretax profit in 2014 was $6.9 billion.

Ford shares closed on Thursday at $16.01, compared with $15.25 a year ago.

Ford will hold its annual shareholders meeting in Delaware on May 14.

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Approved Death Claims Related to GM Ignition Switch Recall Rise to 36


The number of approved death compensation claims related to a recall of a faulty General Motors ignition switch has edged up to 36, reported MLive.

The claims were approved by a fund set up by GM to compensate victims of a defective part in mid-to-late-2000s model cars that has led to a massive recall and a federal investigation. The number of approved claims stood at 19 in mid-September and had grown steadily to 35 last month.

The victim compensation fund is being overseen by Kenneth Feinberg, a Washington, D.C. attorney who oversaw similar compensation facilities for disasters such as the BP Gulf of Mexico oil spill and the Sept. 11 terrorist attacks. The GM ignition switch claims facility released its latest report Monday.

The latest tally of claims received stands at 2,215, including 229 death claims, 142 “Category One” injury claims, or those resulting in quadriplegia, paraplegia, double amputation, permanent brain damage or pervasive burns, and 1,844 “Category Two” injury claims, or injuries that required a hospital visit within 48 hours of an accident.

To date, there have been 80 claims determined eligible, including the 36 death claims, as well as five Category One injury claims and 39 Category Two claims.

The deadline for filing a compensation claim has been extended to Jan. 31.

According to the claims resolution facility’s program statistics, 216 claims have been deemed ineligible, while 463 are deficient and 375 are under review. Another 1,081 claims have been submitted with no documentation. Of those, 51 are death claims, 44 are Category One claims and 986 are Category Two.

GM has estimated that compensating all victims of the defective car part could cost the Detroit automaker anywhere from $400-600 million.

GM has recalled 2.6 million vehicles, including 2.2 million in the U.S., affected by the ignition switch. The recall includes 2003-2007 Saturn Ions, 2007-2010 Saturn Skys, 2005-2011 Chevrolet HHRs, 2006-2010 Pontiac Solstices, and 2005-10 Chevrolet Cobalt and Pontiac G5 models.

The faulty ignition switches at the heart of the unprecedented recall can move out of the “run” position to the “accessory” or “off” positions, leading to a loss of power. The risk may be increased if the key ring is carrying added weight or if the vehicle goes off road or experiences some jarring event, including rough roads. If the key turns to one of those positions, officials say the front air bags may not work if there’s a crash.

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Approved Death Claims Related to GM Ignition Switch Recall Hits 30


DETROIT – The number of approved death compensation claims related to a recall of a faulty General Motors ignition switch has risen to 30, reported MLive.

The number of claims was at 29 last week, after rising from 19 such claims in September.

The claims were approved by a fund set up by GM to compensate victims of a defective part in mid-to-late-2000s model cars that has led to a massive recall and a federal investigation.

The victim compensation fund is being overseen by Kenneth Feinberg, a prominent Washington, D.C. attorney who oversaw similar compensation facilities for disasters such as the BP Gulf of Mexico oil spill and the Sept. 11 terrorist attacks.

The latest tally of claims received stands at 1,580, including 192 death claims, 102 “Category One” injury claims, or those resulting in quadriplegia, paraplegia, double amputation, permanent brain damage or pervasive burns, and 1,286 “Category Two” injury claims, or injuries that required a hospital visit within 48 hours of an accident.

To date, there have been 61 claims determined eligible, including the 30 death claims, as well as four Category One injury claims and 27 Category Two claims.

The deadline for filing a compensation claim is Dec. 31. GM has estimated that compensating all victims of the defective car part could cost the Detroit automaker anywhere from $400-600 million.

GM has recalled 2.6 million vehicles, including 2.2 million in the U.S., affected by the ignition switch. The recall includes 2003-2007 Saturn Ions, 2007-2010 Saturn Skys, 2005-2011 Chevrolet HHRs, 2006-2010 Pontiac Solstices, and 2005-10 Chevrolet Cobalt and Pontiac G5 models.

The faulty ignition switches at the heart of the unprecedented recall can move out of the “run” position to the “accessory” or “off” positions, leading to a loss of power. The risk may be increased if the key ring is carrying added weight or if the vehicle goes off road or experiences some jarring event, including rough roads. If the key turns to one of those positions, officials say the front air bags may not work if there’s a crash.

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Toyota Plans 19% Boost in Director Pay After Record Profit


Via The Detroit News:

Toyota Motor Corp., the world’s biggest carmaker, plans to boost pay to directors by 19 percent for the last fiscal year after the company earned record profit.

Toyota proposed 1.52 billion yen ($14.9 million) in combined compensation and bonuses to 21 directors, including President Akio Toyoda, in a notice to shareholders Tuesday. The Toyota City, Japan-based company paid 1.28 billion yen the previous fiscal year.

After recording an unprecedented 1.82 trillion yen profit last fiscal year, Toyota forecast this month that net income will slip 2.4 percent in the year ending March 31. The company predicts deliveries to increase in every major region except Japan, where the nation’s first sales-tax increase in 17 years is expected to temper demand.

Toyota has proposed raising its year-end dividend to 100 yen a share, or 165 yen for the full year. The company also is buying back stock for the first time in five years. In March, it said it would repurchase as many as 60 million shares, equivalent to a 1.9 percent stake, for 360 billion yen.

By comparison, total pay for union workers increased 8.2 percent on average from last fiscal year.

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Ghosn Gets 982 Million Yen as Nissan Posts Record Share


Nissan Motor Co. Chief Executive Officer Carlos Ghosn received 982 million yen or $11.46 million in total compensation last fiscal year, including salary and stock options, as the Japanese carmaker captured a record market share.

Ghosn, 57, who got a 10 percent increase in the year ended March, announced his compensation at Nissan’s annual shareholder meeting today. He is the highest-paid leader among Japanese companies that have disclosed executive compensation, according to Bloomberg data. He was followed by Sony Corp. Chairman Howard Stringer, who made about 863 million yen in salary, bonus and stock options, the electronics maker said yesterday.

Ghosn’s pay is lower than the average for global automotive companies, estimated at about $15.3 million by Towers Watson & Co., a U.S. benefits consultant. Ford Motor Co. CEO Alan Mulally earned the most in the industry with about $26.5 million in 2010. Publicly traded Japanese companies are required by financial regulations to disclose compensation for executives who earn more than 100 million yen.

“Western companies see the need to provide higher incentives to top management than Japanese companies do,” said Takeshi Miyao, an analyst at consulting company Carnorama in Tokyo. “They understand that well-performing management leads to good earnings results and they maintain adequate pay to make sure top managers don’t leave for another company.”

Nissan shares rose 2.7 percent to 847 yen at the 3 p.m. close in Tokyo, the highest since March 4.

Toyota Motor Corp. President Akio Toyoda was paid 136 million yen in the year ended March 31, including a 24 million yen bonus, according to a filing to Japan’s finance ministry last week. Honda Motor Co. President Takanobu Ito earned 130 million yen in the same period.

Toyoda’s pay wasn’t listed a year earlier, indicating he earned less than 100 million yen at the time. Ghosn was paid 891 million yen in the year earlier period.

Nissan’s senior vice president of marketing and sales in Europe, Simon Thomas, left this month to take a job at Volkswagen AG, Ghosn said in an interview.

“Nissan is obviously targeted not just by Japanese companies, but foreign companies going after talent,” Ghosn said.

For his role as CEO of Nissan’s alliance partner Renault SA, the executive was paid 1.2 million euros ($1.7 million) in 2010 after dropping claims to his bonus following a mishandled spying investigation.

Nissan, Japan’s second-largest automaker, boosted global vehicle sales 19 percent to 4.185 million in the year ended March 31 as China sales surged 36 percent and North American deliveries gained 17 percent. The carmaker’s global market share rose 0.3 percentage points to a record 5.8 percent.

Japanese automakers are recovering from the nation’s record earthquake on March 11, which disrupted auto production. Nissan expects to resume full output worldwide by October, the fastest recovery among the nation’s largest automakers.

Nissan said this month it would pay its top 14 executives and auditors an average of 126 million yen for the year ended March 31. Average pay for nine executives excluding corporate auditors rose 32 percent to 186.4 million yen, more than twice the levels at Toyota and Honda.

Nissan posted net income of 31 billion yen for the three months ended March as global vehicle sales rose 16 percent to 1.2 million. In the same period, Toyota’s profit fell to the lowest in 18 months to 25 billion yen as sales declined 12 percent.

Non-Japanese officials account for 44 percent, or 43 of the top 97 positions at Nissan, and four out of nine, or 44 percent, of its executive committee members, according to the automaker. The top 97 positions include Brazilian, Portuguese, British, French, Dutch, American, Indian, German, Italian, Spanish, Canadian and South African executives, Nissan said.

“There are no other automakers in the world that have this kind of diversity,” Ghosn said. “Because our executive team is so diverse, for compensation, we benchmark some of the similarly diversified companies, and the reason is simple: we compete against these companies for the same pool of multicultural, highly educated and highly mobile talent.”

Ghosn’s total compensation was 0.3 percent of Nissan’s net income for the year ended March 31, compared with an average of 1.4 percent for CEOs at S&P 500 companies, according to Equilar Inc., a Redwood City, California-based executive-pay researcher.

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