Goodyear shareholders want a 'say on pay'
Shareholders believe that the compensation of Goodyear Tire & Rubber Co.'s top executives should be voted on annually.
At the 2011 Goodyear Shareholders Meeting, held in Akron, Ohio, on April 12, the frequency of the "say on pay" vote was revealed (such a determination needs to be made every six years). The options had been one, two or three years.
Goodyear's board recommended one year.
"After careful consideration of this proposal, our board of directors has determined that an advisory vote regarding the compensation of our named executive officers that occurs annually is the most appropriate alternative for the company," said Goodyear in its proxy statement.
"We believe that an annual advistory vote on our executive compensation program will enhance shareholder communication by encouraging our shareholders to provide us with their input on our executive compensation policies, practices and plans, and will provide us a means to obtain regular feedback on shareholder sentiment regarding our executive compensation decisions."
The annual vote option was passed by 81% of those voting.
In 2010, Goodyear reported a net loss of $216 million on net sales of $18.8 billion. That compares to a net loss of $375 million on net sales of $16.3 billion in 2009.
Chairman, CEO and President Rich Kramer earned $10.1 million from Goodyear. That included a salary of $929,924.
Former Chairman, CEO and President Bob Keegan, who retired from the company on Oct. 1, 2010, earned $15.3 million in compensation in 2010. That included a salary of $922,500.
None of Goodyear's top executives received bonuses last year.