Resolving the UAW Strike

9/17/23

One of the best things about the current strike of the big three automakers in the U.S. is that it shines a light on how much the executives of these companies are making. Turns out that 2022 was a tougher year for the CEOs of Ford and Stellantis (parent company of Chrysler, Ram, and Jeep) than it was for the CEO of GM. Compensation for Mary Barra, CEO of GM, held steady at $29 million. Jim Farley, Jr., CEO of Ford, and Carlos Taveres, CEO of Stellantis, suffered pay cuts of 8 percent and 14 percent, forcing them to live on a paltry $21 million, and $25 million, respectively.

For most large companies’ CEOs, these three auto companies included, compensation includes salary, bonus, pension contributions, and equity participation in the form of stock grants and/or options. Given the market exposure of public companies, however, whether the figures presented above will ultimately be realized will depend on the future performance of the respective stocks. Rising stock prices will end up fostering an even more generous compensation package, and vice versa.

Here’s another perspective about their compensation levels, recently published by Oregon Public Broadcasting (OPB). OPB put together ratios of CEO compensation relative to the median salaries of their workers. At 281–1, Ford posted the lowest ratio; at 365–1, Stellantis posted the highest. The…