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18-09-2023, 07:00 PM
BY ALEXANDRA OLSON
Updated 5:41 AM GMT+8, September 18, 2023
NEW YORK (AP) — It’s been a central argument for the United Auto Workers union: If Detroit’s three automakers raised CEO pay by 40% over the past four years, workers should get similar raises.
......
Executive pay is notoriously complicated to calculate because so much of it comes in the form of stock grants or stock options. A detailed look at the compensation packages at all three companies shows how the UAW’s claim both overstates and understates reality, depending on the view.
......
Barra, the only one of the three who held the role since 2019, is the highest paid, with a compensation package of worth US$28.98 million in 2022. The single biggest component was US$14.62 million in stock grants, which vest over three years and whose ultimate value depends on stock performance and other metrics.
Her pay has increased 34% since 2019
......
Ford CEO James Farley received nearly US$21 million in total compensation in 2022, a 21% increase over the US$17.4 million then-CEO Jim Hackett received in 2019, according to the company’s proxy statements. Farley’s package last year included $15.14 million in stock awards, which also vest over three years with an ultimate value dependent on performance.
......
the comparison gets complicated is at Stellantis, which was formed in 2021 with the merger of Italian-American conglomerate Fiat Chrysler Automobiles and French PSA Group. Because it is a European company, the way Stellantis discloses executive pay differs significantly from GM and Ford.
In its annual renumeration report, Stellantis reported CEO Carlos Tavares’ 2022 pay was 23.46 million euros. That’s a nearly 77% increase over then Fiat Chrysler CEO Mike Manley’s 2019 pay of 13.28 million euros.
......
But there’s a catch: Stellantis’ figures reflect “realized pay,” which include the value of previously granted equity that vested during the reporting year. U.S. companies, in contrast, use grant date value of stock packages awarded to executives during the reporting year.
......
By that measure, Tavares’ 2022 compensation was in 21.95 million euros in 2022, including 10.9 million in stock awards with a three-year vesting period.
That’s actually 24% decline from Manley’s compensation package in 2019, which was 29.04 million euros
......
So, is Tavares really making less than Manley was four years ago? Not really.
That’s because in some years, talking about a CEO’s “realized pay” can obscure exorbitant pay packages approved by company boards.
Take Tavares’ 2021 compensation package, which included special incentive award of 25 million euros in cash as well as stock worth 19.56 million euros — all contingent on long-term performance goals — granted to Tavares in recognition of “his essential role” in leading the company through the merger.
That one-time award, which came on top of millions of more in regular compensation, alone pushed Tavares’ 2021 compensation package far above what Manley got in 2019.
......
However you slice the numbers, the gap between CEO pay and rank-and-file workers at all three companies is gigantic.
At GM, the median worker pay was US$80,034 in 2022. It would take that worker 362 years to make Barra’s annual compensation.
At Ford, where the median pay was US$74, 691, it would take 281 years.
At Stellantis, with a median pay of 64,328 euros, it would take 365 years
......
It’s far above the typical pay gap at S&P 500 companies, which was 186-1
......
And it’s astronomical by historical standards. According to a study of the 350 largest publicly traded U.S. firms by the left-leaning Economic Policy Institute, the CEO-to-Worker pay ratio was just 15-1 in 1965.
https://apnews.com/article/uwa-strike-gm...ee38b4bcf4
Updated 5:41 AM GMT+8, September 18, 2023
NEW YORK (AP) — It’s been a central argument for the United Auto Workers union: If Detroit’s three automakers raised CEO pay by 40% over the past four years, workers should get similar raises.
......
Executive pay is notoriously complicated to calculate because so much of it comes in the form of stock grants or stock options. A detailed look at the compensation packages at all three companies shows how the UAW’s claim both overstates and understates reality, depending on the view.
......
Barra, the only one of the three who held the role since 2019, is the highest paid, with a compensation package of worth US$28.98 million in 2022. The single biggest component was US$14.62 million in stock grants, which vest over three years and whose ultimate value depends on stock performance and other metrics.
Her pay has increased 34% since 2019
......
Ford CEO James Farley received nearly US$21 million in total compensation in 2022, a 21% increase over the US$17.4 million then-CEO Jim Hackett received in 2019, according to the company’s proxy statements. Farley’s package last year included $15.14 million in stock awards, which also vest over three years with an ultimate value dependent on performance.
......
the comparison gets complicated is at Stellantis, which was formed in 2021 with the merger of Italian-American conglomerate Fiat Chrysler Automobiles and French PSA Group. Because it is a European company, the way Stellantis discloses executive pay differs significantly from GM and Ford.
In its annual renumeration report, Stellantis reported CEO Carlos Tavares’ 2022 pay was 23.46 million euros. That’s a nearly 77% increase over then Fiat Chrysler CEO Mike Manley’s 2019 pay of 13.28 million euros.
......
But there’s a catch: Stellantis’ figures reflect “realized pay,” which include the value of previously granted equity that vested during the reporting year. U.S. companies, in contrast, use grant date value of stock packages awarded to executives during the reporting year.
......
By that measure, Tavares’ 2022 compensation was in 21.95 million euros in 2022, including 10.9 million in stock awards with a three-year vesting period.
That’s actually 24% decline from Manley’s compensation package in 2019, which was 29.04 million euros
......
So, is Tavares really making less than Manley was four years ago? Not really.
That’s because in some years, talking about a CEO’s “realized pay” can obscure exorbitant pay packages approved by company boards.
Take Tavares’ 2021 compensation package, which included special incentive award of 25 million euros in cash as well as stock worth 19.56 million euros — all contingent on long-term performance goals — granted to Tavares in recognition of “his essential role” in leading the company through the merger.
That one-time award, which came on top of millions of more in regular compensation, alone pushed Tavares’ 2021 compensation package far above what Manley got in 2019.
......
However you slice the numbers, the gap between CEO pay and rank-and-file workers at all three companies is gigantic.
At GM, the median worker pay was US$80,034 in 2022. It would take that worker 362 years to make Barra’s annual compensation.
At Ford, where the median pay was US$74, 691, it would take 281 years.
At Stellantis, with a median pay of 64,328 euros, it would take 365 years
......
It’s far above the typical pay gap at S&P 500 companies, which was 186-1
......
And it’s astronomical by historical standards. According to a study of the 350 largest publicly traded U.S. firms by the left-leaning Economic Policy Institute, the CEO-to-Worker pay ratio was just 15-1 in 1965.
https://apnews.com/article/uwa-strike-gm...ee38b4bcf4
