Steel Mills
Industry Struggles Result in CEO Paycuts
Written by Sandy Williams
March 11, 2016
US Steel CEO Mario Longhi took a 35 percent pay cut last year after the company failed to meet financial targets.
Longhi’s pay cut was due mostly to the elimination of a cash incentive award that in 2014 totaled $4 million dollars. A recent Securities and Exchange Commission filing shows the CEO’s compensation at $8.6 million, down from 13.2 million the previous year.
No cash incentive payments were awarded to any of US Steel’s top executives in 2015 after the company posted a $1.5 billion loss.
A 2011 revision to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) gave shareholders a vote on executive pay at least every three years. A review of executive compensation by shareholders is coming up for US Steel at the company’s annual meeting on April 26.
A TribLive article recently noted that the trend to reduce or eliminate CEO incentive pay has taken hold across companies in struggling U.S. industries.
“It’s very early days in proxy season this year,” said John Roe, a managing director at ISS Corporate Solutions Roe, in the TribLive article. “But what we’re hearing is a lot of companies this year are resorting to discretionary pay reductions.”
Other companies cited for reducing executive pay included Allegheny Technologies, Schnitzer Steel Industries Inc., and oilfield service company Schlumberger.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
SSAB announces $74M expansion in Alabama
The project will expand heat treat capacity at its Axis, Alabama plant
ArcelorMittal’s EAF in Alabama expects first heat in Q2
The facility at AMNS Calvert will be the first EAF in North America capable of supplying exposed automotive grades with domestically melted and poured material.
Nucor’s Topalian lauds Trump’s trade policies, downplays impact
Nucor’s top exec Leon Topalian said the benefit of the current administration’s aggressive trade policies “trumps” any risk of potentially higher raw materials prices.
SSAB reports higher production, shipments
But profits slipped vs. last year.
Nucor earnings slump in first quarter, but better times seen ahead
Nucor’s profits fell precipitously in the first quarter, but the company has a rosier outlook for the following quarter.