Goodyear Tire & Rubber Co. will pay its next CEO and President Mark Stewart a signing bonus, and will also cover the cost of an incentive award he forfeited by leaving Stellantis. In all, the bonuses come to nearly $20 million.
The tiremaker disclosed the details in a filing with the U.S. Securities and Exchange Commission.
In the same filing, Goodyear noted Stewart’s predecessor, Rich Kramer, will serve as senior advisor to the CEO from the day Stewart joins the company — Jan. 29 — until his retirement on July 31, 2024.
Stewart’s base salary as the leader of Goodyear will be $1.4 million. As part of the company’s executive annual incentive program, Stewart’s annual target will be 160% of his annual base salary. According to the letter offering Stewart employment — which is dated Dec. 14, a month after Kramer’s exit was announced — the executive incentive plan focuses on the company’s achievement as well as certain business unit metrics and individual objectives.
Stewart signed the compensation plan agreement on Dec. 15.
Additionally, Stewart is eligible for the long-term incentive plan, and in 2024 his target will be $9 million. The amount may be adjusted from year to year and is based on performance.
The signing bonus
Stewart’s “one-time signing bonus” totals $8.56 million, with half paid in cash and the remaining $4.28 million in fully-vested Goodyear stock. This total represents “the replacement of forfeited awards at your current employer.”
The cash portion of the bonus will be paid within 10 days of his hiring date. The stock portion will be based on the closing price of Goodyear stock on the hiring date.
A “one-time, special” long term incentive plan award worth $11.415 million will be reviewed by Goodyear’s Human Capital and Compensation Committee during its February 2024 meeting. (This amount is intended to replace awards Stewart would have received from Stellantis.) It will be delivered in a mix of Performance Share Units and Restricted Stock Units, with $6.44 million vesting on May 15, 2025, and the remaining $4.975 million vesting in May 2026.
There are other executive benefits in the mix as well, including relocation and moving expenses, as well as standard benefits for healthcare.
He can use Goodyear’s corporate planes for personal use, with the cost paid by the company. He’s also eligible to receive two sets of Goodyear tires each year.