Tuesday, July 30, 2019

Auburn Hills, Michigan-Based Motor Vehicle Supplier WABCO Holdings Inc's Top-Tier Executives Average Pay Raise Was 7.5% 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 20th Michigan Company I am addressing is WABCO Holdings Inc.

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

WABCO Holdings Inc's Top-Tier Executive Average Pay Raise was 7.5% per year for the last decade and is the very lowest of the 20 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. BorgWarner +25.3% per year for the past ten years
  9. Dow Chemical +22.4% per year for the past ten years
  10. CMS Energy +21.9% per year for the past ten years
  11. Stryker Corp +20.7% per year for the past ten years
  12. Penske Automotive Group +19.0% per year for the past 10 years
  13. Ford Motor Co +17.0% per year for the past ten years
  14. Masco +15.6% per year for the past ten years
  15. Ally Financial +15.6% per year for the past four years
  16. DTE Energy +10.6% per year for the past ten years
  17. Aptiv PLC +10.0% per year for the past eight years
  18. Whirlpool +7.9% per year for the past ten years
  19. Kellogg +7.8% per year for the past ten years
  20. WABCO Holdings +7.5% per year for the past ten years
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 Fair Pay Raise Income Inequality Narrowing Company tax incentives ..... the carrot ..... and Company wise tax disincentives ..... the stick.  

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
WABCO Holdings 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
Jacques Esculier CEO        8,081        8,491        8,491        7,584        7,584        6,800        6,800        5,957        5,957        6,820
Nick Rens President EMEA        1,552        1,699        1,699        1,471        1,472        1,401        1,401        1,295  N/A   N/A 
Alexander De Bock CFO (Interim)  N/A   N/A   N/A   N/A 
Jorge Solis President Truck, Bus & Car OEMs        1,530        1,113
Nicholas Bardot Chief Supply Chain Officer        1,363        1,113
Prashanth Mahendra-Rajah  N/A   N/A         3,270        1,934  N/A   N/A   N/A   N/A 
Leon Liu Frmr Pres Truck, Bus & Car OEMs  N/A   N/A         1,984        1,744        1,744        1,775
Daniel Sebillaut Frmr Chief Supply Chain Off  N/A   N/A         1,553        1,540  N/A   N/A 
Nikhil Varty        1,223        1,378
Jason Campbell           636           579
 Totals         9,633      10,190      13,083      11,281      12,326      10,135      11,738      10,536        9,560      10,552
Annual % Change vs Prior Year -5.5% 16.0% 21.6% 11.4% -9.4%
 5 Year Average Per Year % Change 6.8%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec
WABCO Holdings 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
Jacques Esculier CEO        6,820        6,806        6,806      12,090      12,090        5,349        5,349        3,790        3,790        5,794
Jorge Solis President Truck, Bus & Car OEMs
Nicholas Bardot Chief Supply Chain Officer
Leon Liu Frmr Pres Truck, Bus & Car OEMs  N/A   N/A 
Nikhil Varty        1,378        1,893        1,893        1,707        1,707        1,433        1,433        1,241        1,241        1,657
Jason Campbell Interim CFO  N/A   N/A 
Ulrich Michel Former CFO  N/A   N/A         1,997        2,352        2,352        1,839        1,839        1,528        1,528        2,112
Jean-Christophe Figueroa        2,693        2,066        2,066        1,544        1,544        1,312        1,312        1,755
Kevin Dorrant        1,713        1,669        1,669        1,422        1,422        1,122        1,122        1,511
 Totals         8,198        8,699      15,102      19,884      19,884      11,587      11,587        8,993        8,993      12,829
Annual % Change vs Prior Year -5.8% -24.0% 71.6% 28.8% -29.9%
5 Year Average Per Year % Change 8.1%
10 Year Average Per Year % Change 7.5%  



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