Wednesday, July 31, 2019

Detroit, Michigan-Based Bank Chemical Financial Corp's Top-Tier Executives Average Pay Raise Was a Blistering 30.7% Per Year During the Past 10 Years (2009-2018)

Detroit, Michigan is the site of the second Democratic 2020 Presidential candidate televised debate to be held on July 30-31, 2019.  The Under 75 Progressive Wing will be led by the energetic Elizabeth Warren, Kamala Harris, Corey Booker and Julian Castro.  The Under 75 More Moderate Wing will be led by Pete Buttigieg, Amy Klobuchar, Beto O'Rourke and Latecomers Michael Bennet and Steven Bullock.

The key issue to Detroit and to Michigan citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

Thus I will be doing research and making posts on the average pay raise per year that the Top-Tier Executives of many large Michigan Companies were rewarded with in the past ten years.

The 25th and last Michigan Company I am addressing is Chemical Financial Corp.

From annual compensation information contained in Company Proxy Statement filings with the SEC, the chart at the very bottom below shows Chemical Financial Corp's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the most recent ten years. 

Chemical Financial's Top-Tier Executive Average Pay Raise was a blistering 30.7% per year for the last ten years and is the 6th highest of the 25 large Michigan Companies I have addressed and now I'm done with Michigan.
  1. Credit Acceptance Corp +195.9% per year for the past ten years
  2. DowDupont +94.5% per year for the past ten years
  3. Sun Communities Inc +72.8% per year for the past ten years
  4. Lear Corp's +56.1% per year for the pat ten years
  5. Domino's Pizza +31.8% per year for the past ten years
  6. Chemical Financial  +30.7% per year for the past ten years
  7. General Motors  +29.5% per year for the past ten years
  8. Perrigo +28.8% per year for the past ten years
  9. Adient plc +27.5% per year for the past five years
  10. BorgWarner +25.3% per year for the past ten years
  11. Universal Forest Products +23.7% per year for the past ten years
  12. Dow Chemical +22.4% per year for the past ten years
  13. CMS Energy +21.9% per year for the past ten years
  14. Stryker Corp +20.7% per year for the past ten years
  15. Gentex +19.3% per year for the past ten years
  16. Penske Automotive Group +19.0% per year for the past ten years
  17. Ford Motor Co +17.0% per year for the past ten years
  18. Steelcase +15.7% per year for the past ten years
  19. Masco +15.6% per year for the past ten years
  20. Ally Financial +15.6% per year for the past four years
  21. DTE Energy +10.6% per year for the past ten years
  22. Aptiv PLC +10.0% per year for the past eight years
  23. Whirlpool +7.9% per year for the past ten years
  24. Kellogg +7.8% per year for the past ten years
  25. WABCO Holdings +7.5% per year for the past ten years
The only highly effective US Government law enacted by either party in the past decade that has substantially reduced income inequality expansion is Obamacare and the political right is continually trying to repeal and replace it and at least two and perhaps even three of the top four Democratic Presidential candidates now leading in the polls are effectively running as their principal issue to do in essence precisely the same thing ..... repeal and replace Obamacare ..... but to do it with a pure Medicare For All.  The pure Medicare For All advocated by Bernie Sanders and Elizabeth Warren and which was co-sponsored in a US Senate bill by Kamala Harris is off-the-charts enormously expensive and would take up an enormous amount of time with no positive result since it has no chance of getting passed legislatively.  If the Democratic nominee is either of them, Trump will easily win in the general election.  It is that simple. 

My objective is to get a better handle on just why the US and especially Michigan has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages, coupled with the stock price appreciation subsequent to the time the Top-Tier Executives were rewarded in their pay with stock equity compensation.

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives ..... the carrot ..... and Company wise tax disincentives ..... the stick.  I am certain ..... it is simple math ..... that this tax proposal would be very effective in substantially reducing the huge income inequality expansion that has occurred for decades in annual percentage pay raises between higher-level company executives and the rest of the company employees. 

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages, including those retired.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Chemical Financial 2018 2017 2017 2016 2016 2015 2015 2014 2014 2013
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Provost CEO of Chemical        3,534        1,933  N/A   N/A 
Klaeser CFO        2,357        2,031  N/A   N/A 
Torgow Executive Chair        3,507        1,904  N/A   N/A 
Shafer CEO of Chemical Bank        2,926        2,045  N/A   N/A 
Ryan  N/A   N/A 
Rathbun EVP Retail        1,250        1,104  N/A   N/A 
Ramaker Former CEO Chemical Financial        4,835        4,316        4,316        2,125        2,125        2,351        2,351        1,686
Gwizdala CFO        2,312           793           793        1,111        1,111           675
Kohn CEO Insite Capital        1,100           767           767           959           959           731
Tomczyk EVP Senior Credit Officer           653           646           646           573
Johnson EVP Director of Bank Operations           591           525
 Totals       12,324        7,913        6,085        5,420        7,728        3,685        4,338        5,067        5,658        4,190
Annual % Change vs Prior Year 55.7% 12.3% 109.7% -14.4% 35.0%
 5 Year Average Per Year % Change 39.7%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
Chemical Financial 2013 2012 2012 2011 2011 2010 2010 2009 2009 2008
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
Ramaker Former CEO Chemical Financial        1,686        1,901        1,901        1,564        1,564        1,282        1,282           679           679           587
Gwizdala CFO           675           917           917           755           755           676           676           411           411           357
Kohn CEO Insite Capital           731           957           957           806           806           659           659           426           426           333
Tomczyk EVP Senior Credit Officer           573           564           564           469           469           440           440           277           277           253
Johnson EVP Director of Bank Operations           525           525           525           423           423           393           393           252           252           234
 Totals         4,190        4,864        4,864        4,017        4,017        3,450        3,450        2,045        2,045        1,764
Annual % Change vs Prior Year -13.9% 21.1% 16.4% 68.7% 15.9%
5 Year Average Per Year % Change 21.7%
10 Year Average Per Year % Change 30.7%



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Grand Rapids, Michigan Office Furniture Manufacturer Steelcase Inc's Top-Tier Executives Average Pay Raise Was a Very Robust 15.7% Per Year During the Past 10 Years (Feb 2010-Feb 2019). The Second 5 Years (Feb 2010-Feb 2014) With Current Ford CEO James Hackett as Steelcase's CEO, Steelcase's Top-Tier Executives Average Pay Raise Was a Blistering 25.9% Per Year.

Detroit, Michigan is the site of the second Democratic 2020 Presidential candidate televised debate to be held on July 30-31, 2019.  The Under 75 Progressive Wing will be led by the energetic Elizabeth Warren, Kamala Harris, Corey Booker and Julian Castro.  The Under 75 More Moderate Wing will be led by Pete Buttigieg, Amy Klobuchar, Beto O'Rourke and Latecomers Michael Bennet and Steven Bullock.

The key issue to Detroit and to Michigan citizens should be the huge and continuing Income Inequality Expansion which is at the core of many critical problems the US faces.

Thus I will be doing research and making posts on the average pay raise per year that the Top-Tier Executives of many large Michigan Companies were rewarded with in the past ten years.

The 24th Michigan Company I am addressing is Steelcase Inc.

From annual compensation information contained in Company Proxy Statement filings with the SEC, the chart at the very bottom below shows Steelcase Inc's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the most recent ten years. 

Steelcase Inc's Top-Tier Executive Average Pay Raise was a very robust 15.7% per year for the last ten years and is the 17th highest of the 24 large Michigan Companies I have addressed so far.
  1. Credit Acceptance Corp +195.9% per year for the past ten years
  2. DowDupont +94.5% per year for the past ten years
  3. Sun Communities Inc +72.8% per year for the past ten years
  4. Lear Corp's +56.1% per year for the pat ten years
  5. Domino's Pizza +31.8% per year for the past ten years
  6. General Motors  +29.5% per year for the past ten years
  7. Perrigo +28.8% per year for the past ten years
  8. Adient plc +27.5% per year for the past five years
  9. BorgWarner +25.3% per year for the past ten years
  10. Universal Forest Products +23.7% per year for the past ten years
  11. Dow Chemical +22.4% per year for the past ten years
  12. CMS Energy +21.9% per year for the past ten years
  13. Stryker Corp +20.7% per year for the past ten years
  14. Gentex +19.3% per year for the past ten years
  15. Penske Automotive Group +19.0% per year for the past ten years
  16. Ford Motor Co +17.0% per year for the past ten years
  17. Steelcase +15.7% per year for the past ten years
  18. Masco +15.6% per year for the past ten years
  19. Ally Financial +15.6% per year for the past four years
  20. DTE Energy +10.6% per year for the past ten years
  21. Aptiv PLC +10.0% per year for the past eight years
  22. Whirlpool +7.9% per year for the past ten years
  23. Kellogg +7.8% per year for the past ten years
  24. WABCO Holdings +7.5% per year for the past ten years
The only highly effective US Government law enacted by either party in the past decade that has substantially reduced income inequality expansion is Obamacare and the political right is continually trying to repeal and replace it and at least two and perhaps even three of the top four Democratic Presidential candidates now leading in the polls are effectively running as their principal issue to do in essence precisely the same thing ..... repeal and replace Obamacare ..... but to do it with a pure Medicare For All.  The pure Medicare For All advocated by Bernie Sanders and Elizabeth Warren and which was co-sponsored in a US Senate bill by Kamala Harris is extremely expensive and would take up an enormous amount of time with no positive result since it has no chance of getting passed legislatively.  If the Democratic nominee is either of them, Trump will easily win in the general election.  It is that simple. 

My objective is to get a better handle on just why the US and especially Michigan has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages, coupled with the stock price appreciation subsequent to the time the Top-Tier Executives were rewarded in their pay with stock equity compensation.

To fix Income Inequality driven mainly by Company and its Board of Director choices on Percentage Annual Pay Raises, the US Government should step in and pass wisely-designed, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives ..... the carrot ..... and Company wise tax disincentives ..... the stick.  I am certain that this tax proposal would be very effective in substantially reducing the huge income inequality expansion that has occurred for decades in annual percentage pay raises between higher-level company executives and the rest of the company employees. 

And the continuing annual net tax revenues raised by the US Government here should be set up in a separate fund to be used only for wise additional income inequality narrowing initiatives.  This fund should be run by an outside group made up entirely of minorities harmed the most by Income Inequality Expansion of the past decades  .....all women, all blacks, all Latinos, all other non-white people, all past and present union members, all LGBTQ, all non-employee contract workers and all middle and lower income people of all ages, including those retired.

Also, the US Government should require all US Corporate Boards to include at least one worker representative and to exclude any Company Executive.

FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb
Steelcase 2019 2018 2018 2017 2017 2016 2016 2015 2015 2014
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
James Keane CEO        6,439        4,700        4,700        5,012        5,012        6,178        6,178        5,366        5,366        4,742
David Sylvester CFO        2,368        1,878        1,878        2,104        2,104        2,283        2,283        2,402        2,402        1,906
Lizbeth O'Shaughnessy General Counsel        1,571        1,377        1,377        1,469        1,469        1,599        1,599        1,621  N/A   N/A 
Sara Armbruster VPStrategyResearch&Digital        1,397        1,168        1,168        1,279        1,279        1,306        1,306        1,573        1,573        1,401
Allan Smith VP Global Marketing  N/A   N/A 
Eddy Schmitt SVP Americas           930        1,001        1,001        1,249  N/A   N/A     
 Totals       11,775        9,123      10,053      10,865      10,865      12,615      11,366      10,962        9,341        8,049
Annual % Change vs Prior Year 29.1% -7.5% -13.9% 3.7% 16.1%
 5 Year Average Per Year % Change 5.5%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Feb Feb Feb Feb Feb Feb Feb Feb Feb Feb
Steelcase 2014 2013 2013 2012 2012 2011 2011 2010 2010 2009
Top-Tier Total Total Total Total Total Total Total Total Total Total
Executive Comp Comp Comp Comp Comp Comp Comp Comp Comp Comp
$ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s $ 000s
James Keane President and COO        4,742        3,420        3,420        2,576        2,576        1,727        1,727        1,414        1,414           917
David Sylvester CFO        1,906        2,076        2,076        2,071        2,071        1,501        1,501        1,334        1,334           689
Lizbeth O'Shaughnessy General Counsel  N/A   N/A 
Sara Armbruster VPStrategyResearch&Digital        1,401        2,261  N/A   N/A 
Allan Smith VP Global Marketing
Eddy Schmitt SVP Americas
James Hackett CEO        5,783        5,787        5,787        5,812        5,812        3,534        3,534        2,189        2,189        2,051
Nancy Hickey Chief Admin Officer        1,525        1,720        1,720        1,657        1,657        1,240        1,240           995           995           752
Mark Baker Global Operations Officer        2,338        1,728        1,728        1,457        1,457           824
 Totals       15,357      15,264      13,003      12,116      14,454        9,730        9,730        7,389        7,389        5,233
Annual % Change vs Prior Year 0.6% 7.3% 48.6% 31.7% 41.2%
5 Year Average Per Year % Change 25.9%
10 Year Average Per Year % Change 15.7%


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