{"id":352,"date":"2010-05-11T08:26:41","date_gmt":"2010-05-11T12:26:41","guid":{"rendered":"http:\/\/www.salaryfor.com\/blog\/?p=352"},"modified":"2010-09-23T22:10:58","modified_gmt":"2010-09-24T02:10:58","slug":"auto-industry-executives-poised-for-major-payout","status":"publish","type":"post","link":"https:\/\/salaryfor.com\/blog\/auto-industry-executives-poised-for-major-payout\/","title":{"rendered":"Auto industry executives poised for major payout"},"content":{"rendered":"

\"d1\" BY MARK KLEIS<\/strong><\/p>\n

Due to the unique circumstances that placed automakers\u2019 stocks at record lows in 2009, many auto executives are now set to receive substantial net payouts as a result of the drastic increase in stock values. Before the stock increase, many executives were working for substantially below-market wages, making the merit-based payout a welcome change.<\/p>\n

<\/span><\/p>\n

The\u00a0Associated Press<\/em> recently performed an in-depth analysis of standard and Poor\u2019s 500 index, tracking the compensation for all CEOs representing companies in that list. The\u00a0AP<\/em>analysis reviewed CEO compensation from 2008 through 2010, and found that rebounding stock prices have created the possibility for a major payout for top executives which have been relying heavily on stock options for compensation during the recent recession.<\/p>\n

One glaring trend spotted during the\u00a0AP<\/em> analysis was that many CEO\u2019s pay had been assigned via stock options in early 2009 while stocks were at a 12-year low, providing for substantial growth opportunity in the future. At the time, however, many CEOs were faced with stock options from 2008 that were in fact lower than their original estimates.<\/p>\n

Now, by 2010, the markets have largely recovered and in some cases the increase was as large as a ten-fold jump in value. In the auto industry, Alan Mulally\u2019s pay stood as a prime example Ford \u00a0granted Mulally 5 million stock options with an estimated value of $5 million in March 2009, as derived from a unique formula. At the time of Mulally\u2019s 2009 stock assignment Ford \u00a0stock was trading at $1.96, which has since increased to a value over six times that amount \u2013 putting a value of $48 million on those stock options.The\u00a0AP<\/em> also pointed out that Mulally\u2019s 2008 options \u2013 then valued at $9 million \u2013 are now worth over $20 million. In the same year, both\u00a0Alan Mulally and then-Chrysler CEO Robert Nardelli accepted $1 annual salaries\u00a0due to the dire circumstances facing their companies. By contrast, the top paid CEO for 2009 was Carol Bartz, of Yahoo, with $47.2 million in total compensation, with 90 percent coming as a result of stock options and awards.<\/p>\n

GM\u2019s executives may also potentially cash in on stock options in the future, but since the automaker is not yet publicly traded, the gains will likely not be as high. GM\u2019s CEO, Ed Whitacre was given $1.7 million in salary for 2010, with $5.3 million in stock options beginning in 2012 as well as $2 million in restricted stock.<\/p>\n

source: <\/em>leftlanenews.com<\/a><\/strong><\/p>\n

click here for more salary information<\/span><\/a><\/strong><\/span><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

BY MARK KLEIS Due to the unique circumstances that placed automakers\u2019 stocks at record lows in 2009, many auto executives are now set to receive substantial net payouts as a result of the drastic increase in stock values. Before the stock increase, many executives were working for substantially below-market wages, making the merit-based payout a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[609,611,615,1398,148,1390,1393,1394,614,1381,1388,1392,347,1395,1389,431,1396,1391,1397,1399],"class_list":["post-352","post","type-post","status-publish","format-standard","hentry","category-business-stories","tag-alan-mulally","tag-auto-executives","tag-auto-industry","tag-automakers","tag-ceo-compensation","tag-ceo-robert","tag-drastic-increase","tag-growth-opportunity","tag-industry-executives","tag-prime-example","tag-record-lows","tag-representing-companies","tag-robert-nardelli","tag-standard-and-poor","tag-stock-increase","tag-stock-options","tag-stock-prices","tag-stock-values","tag-substantial-growth","tag-top-executives"],"_links":{"self":[{"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/posts\/352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/comments?post=352"}],"version-history":[{"count":5,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/posts\/352\/revisions"}],"predecessor-version":[{"id":943,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/posts\/352\/revisions\/943"}],"wp:attachment":[{"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/media?parent=352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/categories?post=352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/salaryfor.com\/blog\/wp-json\/wp\/v2\/tags?post=352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}