Magna founder Frank Stronach got $52 million in consulting fees in 2013

Article by Christian A., on April 9, 2014

Magna International Inc.’s founder Frank Stronach received $52 million in consulting fees from Canadian auto supplier in 2013. Stronach received around $900 million to cede control of Magna under a contentious buyout agreement in 2010. Under the terms of the deal, Stronach received 2.25 percent of Magna's pre-tax profit in 2013 and will be paid 2 percent in 2014, the final year of compensation.

Magna is stressing that Stronach’s compensation will stop at the end of this year, saying that the arrangements will not be renewed, extended or replaced with any other form. Stronach received $47 million in 2012 and $38 million in 2011 for consulting services under the deal.

The founder stopped being an officer at Magna in 2010 and resigned as a director in 2012. Magna said that Stronach's only role in 2013 was as a consultant. Stronach quit the Austrian parliament in January 213, after founding a party that grabbed only 6 percent of the popular vote and 11 seats in September 2013 elections.

Once payments to Stronach stop, Magna will cut the profit-sharing cap for senior executives from the current 6 percent to just 3 percent of pre-tax profit. The company said the move is designed to give shareholders the certainty that the profit-sharing percentage Stronach had received “will not be allocated to anyone else.

Magna chief executive Don Walker received almost $19 million in total compensation in 2013. Chief financial officer Vincent Galifi got $7.6 million while chief operating officer Tommy Skudutis received $7.5 million. [source: automotive news - sub. required]

Topics: magna

If you liked the article, share on:

Comments

Recommended

Are you a big fan of legendary boxer Mike Tyson, the former heavyweight world champion? Or are you a big fan of the iconic Ferrari F50? Either way, you will...
by - February 24, 2017
It seems that AM-RB 001 hypercar is not the only vehicle project that Aston Martin and Red Bull Racing has gone into. This time, don’t expect something as outlandish as...
by - February 24, 2017
The year 2018 marks the golden anniversary of Subaru of America. Of course, the company will celebrate 50 years of being at the helm of the brand’s crusade in North...
by - February 24, 2017
During car crashes and accidents, there are times that its occupants can’t get out easily. There are times when the only way to get out of that situation is to...
by - February 23, 2017
Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries