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 17th Michigan Company I am addressing is DowDupont, which has two Company headquarters in Midland, Michigan and in Wilmington, Delaware.
With the 2017 merger of nearly equals between Dow Chemical and Dupont, both companies became wholly-owned subsidiaries temporarily of the newly-created, publicly-held DowDupont.
There were five former Midland, Michigan-based Dow Chemical Top-Tier Executives who were also considered Top-Tier Executives of this new DowDupont Company. These five Executives had their Total Compensation increase from $55.5 mil in 2016 to $185.1 mil in 2017, or up an astonishing 233% in just one year.
The two former Dupont Top-Tier Executives who were also Top-Tier Executives of the new DowDupont only disclosed their 2017 salary earned in the last four months of 2017.
From annual compensation information contained in Company Proxy Statement filings with the SEC, the chart at the very bottom below shows DowDuPont's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the most recent two years.
DowDupont's Top-Tier Executive Average Pay Raise was an off-the-charts 94.5% per year for the most recent two years and is the second highest of the 17 large Michigan Companies I have addressed so far.
- Credit Acceptance Corp +195.9% per year for the past ten years
- DowDupont +94.5% per year for the past ten years
- Sun Communities Inc +72.8% per year for the past ten years
- Lear Corp's +56.1% per year for the pat ten years
- Domino's Pizza +31.8% per year for the past ten years
- General Motors +29.5% per year for the past ten years
- Perrigo +28.8% per year for the past ten years
- BorgWarner +25.3% per year for the past ten years
- Dow Chemical +22.4% per year for the past ten years
- CMS Energy +21.9% per year for the past ten years
- Stryker Corp +20.7% per year for the past ten years
- Ford Motor Co +17.0% per year for the past ten years
- Masco +15.6% per year for the past ten years
- Ally Financial +15.6% per year for the past four years
- DTE Energy +10.6% per year for the past ten years
- Aptiv PLC +10.0% per year for the past eight years
- Kellogg +7.8% 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, simple but effective Fair Pay Raise Income Inequality Narrowing Company tax incentives for rewarding non-executive employees with fair pay increases ..... the carrot ..... and Company tax disincentives for rewarding executive employees with clearly excessively high pay increases ..... 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 company executives and the rest of the company employees.
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 for rewarding non-executive employees with fair pay increases ..... the carrot ..... and Company tax disincentives for rewarding executive employees with clearly excessively high pay increases ..... 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 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 | ||
| DowDupont | 2018 | 2017 | 2017 | 2016 | |
| Top-Tier | Total | Total | Total | Total | |
| Executive | Comp | Comp | Comp | Comp | |
| $ 000s | $ 000s | $ 000s | $ 000s | ||
Edward Breen Chair and CEO
|
N/A
|
N/A
|
N/A
|
N/A
|
|
Howard Ungerfelder CFO
|
11,995
|
29,790
|
29,790
|
8,724
|
|
James Fitterling COO Materials
Science Div
|
8,471
|
32,305
|
32,305
|
10,095
|
|
Marc Doyle COO Specialty
Products Division
|
N/A
|
N/A
|
|||
James Collins COO Agriculture
Division
|
N/A
|
N/A
|
N/A
|
N/A
|
|
Andrew Liveris Former
Executive Chairman
|
53,676
|
65,689
|
65,689
|
22,963
|
|
Charles Kalil Former General Counsel
Mtls Sci Div
|
15,550
|
33,636
|
33,636
|
7,032
|
|
Joe Harlan Former Dow
Executive Officer
|
N/A
|
N/A
|
23,691
|
6,718
|
|
Totals
|
89,692
|
161,420
|
185,111
|
55,532
|
|
Annual % Change
|
-44.4%
|
233.3%
|
|||
2 Year Average Per Year %
Change
|
94.5%
|
