MULALLY OUT-EARNED TOYODA AND GHOSN COMBINED IN 2009
A new report that focuses on automaker chief executive officer compensation has suggested that Ford’s high-profile CEO, Alan Mulally, managed to bring home more compensation in 2009 than both Akio Toyoda and Carlos Ghosn – combined.
The report, compiled by Bloomberg, refers only to the executives’ pay as “compensation,” but falls short of differentiating between salary and other forms of compensation. Leftlane issued a detailed report in mid-May that outlined the potential for major payouts to auto industry executives for 2009, in which we explained the reasons for such dramatic pay increases.
The Leftlane report discussed the fact that many auto executives were poised for major net-earnings following strong recoveries at the companies they represented due to their heavy compensation bias in stock options. Alan Mulally, for example, took only a $1 annual salary for 2008, but his stock options were issued when Ford stock was trading at $1.96 – compared to a value roughly five to six times that figure today.
As a result, the value of Mulally’s stock options provided for a healthy total compensation, especially when compared to Toyoda and Ghosn. Bloombergsays that Toyoda received approximately $1.1 million in total compensation for 2009, a number reduced due to the recall struggles that battered the beleaguered automaker. Carlos Ghosn, Renault-Nissan CEO, earned just shy of $10 million for 2009, with Honda’s CEO, Takaobu Ito earning just under $1.3 million.
the average compensation for automotive CEOs came in at roughly $12 million for 2009, based on a study by Towers Watson & Co., a U.S. benefits consulting firm. Towers Watson says that Mulally led all CEOs with $17.9 million in compensation.
source: leftlanenews
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