Automotive parts supplier Visteon Corp. withheld bonuses for its top executives after the company missed its performance objectives last year, when it lost $US1.2 billion, Reuters said, citing a regulatory filing on Tuesday.
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“The bonuses were not made because we as a company did not meet our performance targets for 2003,” Visteon spokeswoman Kim Welch reportedly said.
Reuters said Visteon chairman and chief executive officer Pete Pestillo earned $5.2 million in salary, stock options and other bonuses for 2003, down from $5.7 million in 2002, which included a bonus of $550,000.
The report noted that Pestillo has overseen a near-constant restructuring at Visteon, which has faced growing pressure for cost cuts from its former parent and largest customer, Ford.
Visteon reportedly said in its annual proxy statement that Pestillo’s pay package included $1.17 million in salary, $169,000 in other compensation, $352,000 from a long-term incentive payout and $3.5 million from stock awards and options.
According to Reuters, Visteon also said that president Michael Johnston, expected to succeed Pestillo, would be entitled to a pay package should the board of directors not name him CEO – he would receive 12 months salary, a bonus, vesting of all stock options and other incentives if he did not succeed Pestillo and elected to retire.
“I certainly do anticipate that following Pete Pestillo, Mike Johnston will be CEO,” Welch reportedly said.
