New Goodyear CEO Stewart gets ~$20 million year-one package

Following the news that Mark Stewart has been appointed as Goodyear’s new global chief executive, further details of his remuneration have emerged. He’s getting paid a double-digit-million-dollar package in year one.

Specifically, Stewart will receive an annual base salary of $1,400,000 and will participate in Goodyear’s Executive Annual Incentive Plan, with a target annual incentive of 160 per cent of his annual base salary “and the company’s long-term incentive program, with a 2024 grant value of $9,000,000.”

Stewart will also receive a one-time signing bonus of $8,560,000, paid 50 per cent in cash and 50 per cent in “fully-vested company common stock” and “a one-time long-term incentive award with a grant value of $11,415,000, delivered $9,805,000 in performance share units and $1,610,000 in restricted stock units, in replacement of forfeited awards at his prior employer”. Stewart will be required to repay these amounts if his prior employer pays any portion of these values to him.

Stewart will be eligible to participate in the Company’s Defined Contribution Excess Benefit Plan to the extent that his annual base salary and annual incentive payments exceed IRS limitations and will be eligible for a Performance Based Benefit under that plan.

“He will also be a participant in the Executive Severance and Change in Control Plan, with a severance multiple of 2.0x salary plus target annual incentive, as well as the other benefit plans and programs that generally are available to the Company’s executive officers and associates”, a stock market filing added.

In other words, Stewart is on-track to receive a year-one cash package of >$10 million dollars plus a share package of a similar low-double-digit-million-dollar wholly stock-linked remuneration. And therefore, Stewart’s year-one total remuneration should be valued at around $20 million.