Goodyear’s Keegan Pay Packet Worth $17 million in 2009
Goodyear Tire & Rubber Co’s chairman and outgoing chief executive of Goodyear Tire & Rubber Co. received a pay package worth as much as US$17.196 million in 2009. While Keegan’s “non-equity incentive plan compensation” virtually doubled from $4.6 million to $9.514 million during the period, total pay was only 5.39 per cent up on the $16.317 million he received last year. In 2008 Keegan’s package was worth $23.6 million, according to company’s Securities and Exchange Commission (SEC) filing.
The filing, which shows details of the top five most highly paid Goodyear executives reveals that at during the trough of the global recession Goodyear Europe Middle East and Africa president Arthur de Bok’s salary was worth half a million dollars less than in 2008 and $20,000 less than 2007. This is largely due to the fact that the value of de Bok’s stock awards fell from $1.879 million to $50,000 between 2008 and 2009. Nevertheless, as Goodyear’s third best paid employee, Arthur de Bok saw his non equity incentive plan compensation virtually triple from $870,000 in 2008 to $2.310 million in 2009, $27,850 more than 2007 levels.
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Year | ($) | ($)(1) | ($)(2) | ($)(3) | ($)(4) | ($)(5) | ($)(6) | ($) | ||||||||||||||||||||||||||
| Robert J. Keegan Chairman of the Board, Chief Executive Officer and President | 2009 | $ | 1,230,000 | $ | 0 | $ | 272,025 | $ | 2,864,820 | $ | 9,514,895 | $ | 3,182,294 | $ | 132,427 | $ | 17,196,461 | ||||||||||||||||||
| 2008 | 1,216,667 | 0 | 542,260 | 3,557,242 | 4,600,000 | 6,269,277 | 131,782 | 16,317,228 | |||||||||||||||||||||||||||
| 2007 | 1,176,667 | 0 | 494,200 | 7,114,961 | 12,300,000 | 2,429,883 | 82,323 | 23,598,034 | |||||||||||||||||||||||||||
| Darren R. Wells Executive Vice President and Chief Financial Officer | 2009 | 450,000 | 0 | 48,100 | 293,157 | 1,471,400 | 144,875 | 46,428 | 2,453,960 | ||||||||||||||||||||||||||
| 2008 | 348,660 | 0 | 151,519 | 164,646 | 400,000 | 45,752 | 16,414 | 1,126,991 | |||||||||||||||||||||||||||
| Richard J. Kramer Chief Operating Officer and President, North American Tire | 2009 | 678,523 | 0 | 108,479 | 902,635 | 3,287,129 | 529,050 | 47,226 | 5,553,042 | ||||||||||||||||||||||||||
| 2008 | 573,333 | 0 | 2,930,784 | 677,379 | 1,100,000 | 464,632 | 25,229 | 5,771,357 | |||||||||||||||||||||||||||
| 2007 | 550,000 | 0 | 391,654 | 1,288,135 | 3,140,000 | 209,556 | 18,393 | 5,597,738 | |||||||||||||||||||||||||||
| Arthur de Bok President, Europe, Middle East and Africa Tire(7) | 2009 | 500,000 | 0 | 50,356 | 358,249 | 2,310,350 | 137,356 | 23,635 | 3,379,946 | ||||||||||||||||||||||||||
| 2008 | 495,000 | 0 | 1,879,929 | 425,518 | 870,000 | 132,467 | 31,353 | 3,834,267 | |||||||||||||||||||||||||||
| 2007 | 427,333 | 0 | 254,513 | 346,200 | 2,282,500 | 56,401 | 29,227 | 3,396,174 | |||||||||||||||||||||||||||
| David L. Bialosky Senior Vice President, General Counsel and Secretary(8) | 2009 | 136,364 | 650,000 | 1,339,982 | 299,992 | 500,000 | 26,998 | 2,908 | 2,956,244 | ||||||||||||||||||||||||||
| (1) | For Mr. Bialosky, this includes a $275,000 sign-on bonus and a $375,000 bonus agreed to as part of his hiring package. | |
| (2) | Represents the aggregate grant date fair value as of the respective grant date for each award. The maximum amount to be awarded with respect to each of the named executive officers is shown in the Grants of Plan-Based Awards Table in the column “Estimated Future Payouts Under Equity Incentive Plan Awards — Maximum.” The assumptions made in valuing stock awards reported in this column are discussed in Note to the Consolidated Financial Statements No. 1, “Accounting Policies” under “Stock-Based Compensation” and Note to the Consolidated Financial Statements No. 13, “Stock Compensation Plans” to Goodyear’s consolidated financial statements included in its Annual Report for the year ended December 31, 2009. For additional information regarding such grants, see “Compensation Discussion and Analysis — Elements of Compensation — Long-Term Compensation — Performance Shares” and “— 2009 Performance Share Grants.” See also “Grants of Plan-Based Awards” below. | |
| (3) | Represents the aggregate grant date fair value as of the respective grant date for each award, including reinvestment options. The assumptions made in valuing option awards reported in this column are discussed in Note to the Consolidated Financial Statements No. 1, “Accounting Policies” under “Stock-Based Compensation” and Note to the Consolidated Financial Statements No. 13, “Stock Compensation Plans” to Goodyear’s consolidated financial statements included in its Annual Report for the year ended December 31, 2009. For additional information regarding such grants, see “Compensation Discussion and Analysis — Elements of Compensation — Long-Term Compensation — Stock Options” and ‘‘— 2009 Stock Option Grants.” See also “Grants of Plan-Based Awards” below. | |
| (4) | Represents amounts awarded under the Management Incentive Plan (the Performance Recognition Plan for Mr. Wells) for performance during 2009 and amounts awarded under the Performance Recognition Plan for performance during 2008 and 2007. For additional information regarding amounts awarded to the named executive officers in 2009, see “Compensation Discussion and Analysis — Elements of |
| Compensation — Annual Compensation — Annual Cash Incentives Under the Management Incentive Plan” and “— 2009 Annual Incentive Payouts.” Also represents amounts awarded under the Executive Performance Plan in respect of the three-year performance periods ended on December 31, 2007, 2008 and 2009, as the case may be, and amounts earned with respect to the performance period ended December 31, 2009 for awards under the Executive Performance Plan that are payable, subject to the named executive officer’s continued service, on December 31, 2011. For additional information regarding such awards, see “Compensation Discussion and Analysis — Elements of Compensation — Long-Term Compensation — Cash-Based Awards Under the Executive Performance Plan,” “— Payouts for the 2007-20092009-2011 Performance Period Under the Executive Performance Plan and With Respect to Performance Shares” and “— Performance for the 2009 Performance Period With Respect to Performance Shares and Awards under the Executive Performance Plan.” |
| (5) | Represents change in pension value for each named executive officer. No nonqualified deferred compensation earnings are required to be reported under applicable Securities and Exchange Commission rules and regulations. | |
| (6) | Includes amounts for home security system installation and monitoring expenses, personal financial planning services, personal use of company aircraft, annual dues for club memberships, the cost of annual physical exams, and provision of up to two sets of automobile tires per year. For Mr. Keegan, this includes $54,832 for the personal use of company aircraft and $38,162 for premiums on life insurance policies that will be used to cover Goodyear’s obligation to make a charitable donation recommended by Mr. Keegan following his death pursuant to the Director’s Charitable Award Program. For more information regarding that program, see “Director Compensation” below. The aggregate incremental cost to the Company for the personal use of company aircraft is equal to the actual flight costs less the amount, based on the Standard Industry Fare Level, reimbursed to the Company, and the aggregate incremental cost of the life insurance policies is the annual premium and related fees. For Mr. de Bok, this also includes amounts for a company car. Mr. Keegan does not participate in the tire program. Company contributions to qualified defined contribution plans in 2009 were $26,950 for Mr. Keegan, $22,050 for Mr. Kramer, and $19,600 for Mr. Wells. | |
| (7) | The amounts in the “Change in Pension Value and Nonqualified Deferred Compensation Earnings” and the “All Other Compensation” columns were converted from euros to U.S. dollars at the exchange rates in effect at December 31, 2007 of €1 = $1.46, December 31, 2008 of €1 = $1.40 and December 31, 2009 of €1 = $1.44. All other amounts were originally determined in U.S. dollars. | |
| (8) | Mr. Bialosky was elected Senior Vice President, General Counsel and Secretary on September 23, 2009. |
Source: Goodyear, Securites and Exchange Commission
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