Goodyear CEO, Richard Kramer, saw a 69% rise in his annual compensation to $8.5 million in 2010, according to an Associated Press calculation from a regulatory filing. The company reversed a 2009 decision to freeze executive officers’ salaries, Bloomberg reports. Meanwhile, the largest US tire maker reported a loss of $216 million for 2010, which included a $160 million charge to close a 1,900-employee plant in Union City, Tennessee.
Goodyear is a prime example of the many US companies that are granting bonuses to its executives despite suffering a loss in revenues. US likely to tweak its executive compensation schemes, Corporate Secretary, 3/30/2011.
Apparently Kramer is being paid base on aspirations, rather than actual performance. That’s one of my aspirations too, get paid for my dreams, rather than reality. Nice work if you can get it. Corporate Secretary also reports, UK firms may begin to lengthen executive remuneration schemes from three years to five, a change that would put pressure on other major companies to change the way they reward senior managers.