CEO Pay Excessive at Navistar
March 23, 2011, 3:20 PM EST
The CEO and President of trucking company Navistar took home $10.3 million in compensation in 2010, a year when the company had shuttered its Chatham, Ontario plant as it pushes for massive concessions from Canadian workers.
As part of that package Daniel Ustian received a $1.95 million bonus for creating a business model "that kept the company profitable in midst of the worst truck market in 50 years," according to a March 18 story on executive bonuses in the Daily Mail in Britain. This bonus was on top of a regular bonus of the same amount.
In addition his total compensation of $10,382,469 in 2010 includes salary, the value of stock options and changes in pension value. This is an increase from 2009 when he received total compensation of $8,818,126 and 2008 when he got $6,642,747.
In the last five years alone three of the top executives at Navistar - Ustian, Navistar's CFO and the President of the company's truck group - took home combined total compensation of $63,970,992, according to Navistar's latest filings with the U.S. Securities and Exchange Commission.
Navistar is demanding massive concessions and has outlined plans to cut employment and production levels at its Chatham, Ontario plant to 100 workers. The facility once employed 2,000 workers, but has not operated since June 2009.
CAW President Ken Lewenza is demanding that the federal and provincial governments take action to force the company to live up to its obligations to these workers, their families and the community of Chatham.
"This massive executive compensation comes at a time when workers are suffering and after the company received over $63 million from the provincial and federal governments," Lewenza said. In addition, it received $40 million of concessions from workers in the last round of negotiations.
"We will continue to pressure this corporation to reopen this important facility to the community," said Lewenza.