Visteon Corp. has given Chief Executive Officer Donald Stebbins a compensation package in 2010 that totaled $26.9 million, up from $3.3 million the previous year. The compensation was fueled by a stock award of $21.2 million, which is the result of how the company’s 16-month bankruptcy reorganization was used to provide a financial windfall to its executives while scrubbing payables of $2.1 billion in debt.
The company and its bondholders have drafted a plan that offered around 2 million new stocks to Stebbins, his team of executives and the bondholders.
However, according to a former shareholder group who requested anonymity, the plan left the shareholders in the lurch. Visteon’s corporate communications director Jim Fisher stated that the compensation for the executive team was approved by the company’s shareholders and creditors as part of the reorganization plan.
Even with more than ten years of bleeding cash and the controversial reorganization procedures, the compensation paid to Stebbins is more than those paid to any other CEO of a public company.
For one, it is higher than the $21.3 million that CEO Andrew Liveris received from Dow Chemical Co. last year. It is also greater than what CEO Alan Mulally at Ford Motor Co. received, which is $26.5 million. In addition, CEO Sergio Marchionne at Chrysler Group received $2.87 million in stock-based compensation in 2010, but not a salary.
Being the CEO of Fiat S.p.A. also, Marchionne was paid $4.8 million last year. Fiat controls Chrysler through the 2009 government-sponsored reorganization. Moreover, CEO Daniel Akerson at General Motors had a $9 million annual compensation package. His pay is regulated by the federal government as part of the company’s taxpayer bailout in 2009.