I love that C-level execs are the only level in which compensation packages are rarely tied to overall corporate performance. Whether it was FoMoCo's exorbitant compensation packages for Mark "Flexmaster" Fields, Don "French Pastry" LeClair or Alan "Well-Paid New Guy" Mulally we saw last week, or whether it's this week with Michael Johnston, the CEO of FoMoCo's spin-off auto supplier, Visteon — they rarely appear to be constructed in such a way as to reward the performance of the actual company. The Freep's reporting today:
"Johnston was paid $10.8 million last year...compensation included $1 million in base salary, $3.3 million in stock awards, $4.2 million in option awards and $185,349 for personal use of corporate aircraft. Johnston also realized $782,792 on the value of stock awards vested in 2006...Visteon also disclosed a package estimated to be worth as much as $27.1 million if Johnston is terminated without cause following any change in control of the company."
And how's Mr. Johnston's company doing? Oh wait —
"Visteon...lost $163 million in 2006, but that was an improvement over the $270 million loss in 2005."
Oh, well that makes sense — they lost $100 million less this year than last. By all means, take your reward Mr. Johnston — for all of your hard work at making your company
profitable less craptastic than the year before.
Stop The Presses! Ford CEO Earns More Than Blogger [internal]