By Jim Mackinnon
Beacon Journal business writer
Goodyear Chairman and Chief Executive Officer Rich Kramer got a $5.2 million bump up in compensation, or 39 percent, last year as the Akron tire maker improved profits and reinstated its dividend.
Kramer’s compensation in 2013 approached $19 million, based on information from Goodyear Tire & Rubber Co.’s recently issued proxy statement and using a calculation formula from the Associated Press.
Kramer’s $18,652,050 in salary, nonequity compensation and stock-related compensation in 2013 was $5,219,508 higher than the $13,432,551 he received in 2012, according to the AP formula. The formula provides different compensation totals than what is reported in proxy statements.
According to the proxy statement, Kramer received $19,190,500 in total compensation last year and $17,105,724 in 2012.
Kramer received a base salary of $1,050,000 in 2013, up from $1,033,333 in 2012.
“More than 90 percent of our CEO’s compensation consists of variable pay, based on the company’s performance and share price,” Goodyear spokesman Keith Price said in a news release. “Goodyear’s executive compensation is strongly aligned to company performance, shareholder value and measurable financial goals, and it is comparable to peer companies.”
Price said that in 2013, Goodyear achieved record segment operating income of $1.58 billion, up 27 percent from 2012; reinstated a stock dividend; and delivered the financial measure called free cash flow of $1 billion, up 43 percent from a year ago. That allowed the company to fully fund its hourly employee pension fund. In addition, Goodyear’s stock price rose 73 percent during the year, Price said.
Goodyear began paying out a 5-cent-per share quarterly dividend last year, its first dividend payment since 2002.
None of Goodyear’s top five most highly compensated executives received a bonus last year, according to the proxy.
Goodyear in 2013 had net income of $600 million, or $2.28 per share, on revenue of $19.5 billion. For fiscal 2012, Goodyear had net income of $183 million, or 74 cents per share, on revenue of almost $21 billion.
Goodyear’s annual shareholders meeting is scheduled for 4:30 p.m. April 14 at the Hilton Akron/Fairlawn hotel.
Jim Mackinnon can be reached at 330-996-3544 or firstname.lastname@example.org.