June 21, 2006
CEOs of troubled companies well paid, CAW says
Toronto, Ontario – Automotive parts manufacturers in Chapter 11 reorganization in the United States “still have lots of money to pay their CEOs,” says a statement issued by the Canadian Auto Workers Union (CAW).
The statement cites Jose Maria Alapont of Federal-Mogul Corp., who received US$4.3 million in total compensation last year; Steve Miller of Delphi Corp., who received US$3.9 million; Mike Burns of Dana Corp., who received $2.3 million; and Frank Macher of Collins and Aikman Corp., who received US$890,000 as a pro-rated portion of his US$1.5 million annual salary, as he was hired in July 2005.
The CAW says that the pay analysis came from an Automotive News report and that the numbers may be conservative, because they do not include stock compensation and pension benefits if the companies emerge from Chapter 11, nor do they include potential bonuses for meeting financial targets or rewards for moving the companies out of reorganization.