24 AUGUST 20, 2018 EXECUTIVE COMPENSATION Did shareholders gain? See how stock performance compares with CEO compensation. Here are the companies in our study, listed in order of change in CEO compensation from 2016 to 2017. Companies whose CEO has been in the position for less than two full years are not listed.
Timken 26.5% Superior Industries International 41.6% Navistar International 88% Shiloh Industries 32.8% Jabil 49.5% General Motors 22% BorgWarner 31% TrueCar ---10.4% Modine Manufacturing 73.4% Stoneridge 29.2% Cummins 32.3% Illinois Tool Works 38.6% Dana 69.9% Ally Financial 55.4% AutoNation 5.5% Visteon 55.8% Lear 35% Asbury Automotive Group 3.7% Penske Automotive Group ---5.3% Gentex 6.9% Sonic Automotive ---18.6% PPG Industries 25.5% Group 1 Automotive ---7.7% Autoliv 14.4% Cooper-Standard Holdings 18.5% American Axle & CEO at record-breaking Lear tops list of highest paid execs 2017 STOCK PERFORMANCE Simoncini earns big bonus before retiring M Jackie Charniga Simoncini atthew Simoncini, who retired after guiding seat supplier Lear Corp.
to record sales and profits, was the highest-paid CEO at publicly traded U.S. automotive companies last year, according to the Auto- motive News/Equilar CEO Compensation study. Simon- cini’s stock awards alone were worth more than the total compensation for the No. 2 CEO, Mary Barra of General Motors. jcharniga@crain.com Ammann Clarke Te only other CEO to top $20 million in to- tal compensation last year was Scott Santi of Illinois Tool Works, which makes engineered fasteners and other components, including capless refueling systems. Musk Te Automotive News/Equilar study ana- lyzed data for 39 companies, including auto- makers, suppliers and public retailers.
Medi- an compensation for the 39 CEOs was $5.5 million in 2017, 19 percent more than a year earlier. Lithia Motors 18.4% KAR Auction Services 21.6% Goodyear Tire & Rubber 6.1% Tesla 45.7% Manufacturing Holdings ---11.8% Te study calculates the benefits that exec- utives receive when stock and options are vested or exercised, so the numbers differ from companies’ executive compensation re- ports that value awards when they are grant- ed, Charlie Pontrelli, research analyst for Equilar, told Automotive News . Barra Hackett Source: Equilar Inc. Simoncini’s total compensation in 2017 rose 14 percent to $32.4 million, according to the study.
Simoncini’s base salary of $1.4 mil- lion was bolstered by $26.4 million in stock award gains. AUTOMOTIVE NEWS ILLUSTRATION Ford CFO Bob Shanks pulled in $4.5 million in 2017, a 19 percent increase. Compensation rose 11 percent for Joe Hinrichs, Ford’s presi- dent of global operations, to $4.6 million. more than the previous year. Troy Clarke, CEO of Navistar International, made $4.7 mil- lion last year, a 182 percent increase. Com- pensation for Shiloh Industries CEO Ramzi Hermiz and Jabil CEO Mark Mondello also more than doubled. cluding Barra, exercised options in 2017 but not in 2016.
Barra’s compensation, GM said in an April regulatory filing, was tied to the company’s performance on targets that include its ef- forts to deploy self-driving vehicles in dense urban environments in 2019, launch at least 20 new electric vehicles by 2023, and increase margins to 10 percent in North America. Most of Simoncini’s pay came from the vesting of his 2015-17 performance shares, Pontrelli said. Simoncini earned the maxi- mum bonus for which he was eligible based on Lear’s strong results. Biggest losers Tesla CEO Elon Musk experienced the big- gest decline in compensation. He earned $49,920 in salary, which is minimum wage in California for an 80-hour week.
Tat’s 99.996 percent less than his 2016 compensation, which was valued at more than $1.3 billion after he exercised soon-to-expire options on the automaker’s skyrocketing stock. GM’s Barra climbed to second place on the total compensation list when her income more than doubled to $25.9 million, driven primarily by stock award and incentive plan gains. Other GM executives also saw large in- creases in their compensation as the compa- ny’s stock price rose. In 2017, Lear posted record net income of $1.3 billion on $20.5 billion in revenue, and closed on a $307 million acquisition of Grupo Antolin’s automotive seating unit.
Compensation for Mark Reuss, GM’s exec- utive vice president for global product devel- opment, purchasing and supply chain, jumped 132 percent to $13.6 million. GM President Dan Ammann received a 68 per- cent boost to $12.2 million, and Alan Batey, GM’s president of North America, gained 107 percent to $9.2 million. Simoncini became Lear’s CEO in 2011, shortly after the company’s bankruptcy reor- ganization, and saw the company’s stock price more than quadruple during his tenure. He stepped down in February. Last year, Musk was in the list’s No. 1 spot; this year he is at the bottom. He may not be in the study much longer, if he succeeds in a re- cently announced plan to take Tesla private.
Barra received $17.9 million from stock and $5 million in nonstock incentives. Barra’s base salary was unchanged at $2.1 million. Top gainers Barra’s 2017 compensation compared with $11.9 million the previous year, which was an increase of 51 percent from $7.9 million in 2015. Ford Motor Co. CEO Jim Hackett made $7.3 million in 2017, his first year on the job, driv- en mostly by bonus and incentive plans. Hackett replaced Mark Fields in May 2017. Other Ford executives saw modest increases, except for Executive Chairman Bill Ford, whose compensation dove 69 percent to $9.2 million last year, from $30.1 million.
Compensation dropped 60 percent for Goodyear Tire & Rubber CEO Richard Kramer, to $5.5 million, and 56 percent for KAR Auction Services CEO Jim Hallett, to $6.5 million. Among other CEOs on the list, Richard Kyle of bearing maker Timken had the largest in- crease from 2016. His 2017 compensation rose 324 percent to $7.2 million. Other GM executives received an income bump from the vesting of performance shares granted in 2014 that were awarded at 195 per- cent of their target, Pontrelli said. Tey are among nine CEOs included in the study who experienced a decline in compen- sation from 2016.
c Donald Stebbins of Superior Industries In- ternational received $5.9 million, 225 percent He added that many of the executives, ex- Dustin Walsh contributed to this report. HOW WE KEEP SCORE T not necessarily mirror the amount that an ex- ecutive earned from selling stock, if any, during the fiscal year. Once options are exer- cised and stock awards vest, they may be re- tained by the executive as common shares of stock. Change in pay for each executive is calcu- lated using compensation data from the prior fiscal year. Tese data are collected in the same fashion described above.
o examine compensation trends for CEOs and other select executives, Automotive News asked Equilar Inc., an executive compensation data firm, to compile and analyze pay data from corpo- rate filings with the U.S. Securities and Ex- change Commission. Te data prepared by Equilar include information for leading auto- motive-sector companies selected by Auto- motive News . gains from the vesting of stock awards and other compensation. Other compensation typically includes benefits and perquisites.
For some CEOs, principally recent hires or newly promoted executives, change in pay is listed as “N.A.” Base salary, bonus payout and other com- pensation values are taken directly from the Summary Compensation Table of each com- pany’s proxy statement. Information on gains from option exercises and from the vesting of stock awards is taken from the Option Exer- cises and Stock Vested Table of the same doc- ument. Te total compensation figures in this sur- vey will not match the value reported in the Summary Compensation Table because that includes the grant date value of equity awards, whereas this survey includes the re- alized value.
Tis survey also excludes the pension and deferred compensation column in the Summary Compensation Table, which may cause a further disparity in the total compensation figures. In addition to annual compensation data, information on executive retirement plans is provided. Te amounts listed in the pension column reflect the lump-sum value of accu- mulated pension benefits accrued by an ex- ecutive. Amounts listed in the deferred com- pensation column reflect the year-end bal- ance held by an executive in nonqualified deferred compensation accounts.
c For each executive, total compensation is calculated as the sum of base salary, cash bo- nus payouts, gains from option exercises, Readers should note that gains from option exercises and the vesting of stock awards do