Thursday, August 1, 2019

Cedar Rapids, Iowa-Based Rockwell Collins Inc's Top-Tier Executives Average Pay Raise Was 9.0% Per Year During the Past 10 Years (Sept 2009-Sept 2018)

After the second Democratic 2020 Presidential candidate debate held in Detroit where Cory Booker was the standout performer, where several other non-top-tier candidates performed very well especially Steve Bullock and where most of the top-tier candidates stumbled, I now will turn my attention to the early primary States and start with Iowa.

The key issue to Iowa 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 the larger Iowa Companies were rewarded with in the past ten years.

The first Iowa Company I am addressing is Rockwell Collins, Inc.

From annual compensation information contained in Company Proxy Statement and 10-K/A filings with the SEC, the chart at the very bottom below shows Rockwell Collins Inc's Top-Tier Executives Annual Total Compensation for each of two consecutive full years of employment for the most recent ten years. 

Rockwell Collins Inc's Top-Tier Executive Average Pay Raise was a very clean, high 9.0% per year for the last 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 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 either a pure or a version of Medicare For All.  The pure Medicare For All advocated by both 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 wasted time with no positive result since it has no chance of getting passed legislatively.  Just given their near-sighted stance on Medicare For All, if the Democratic nominee is any of the three of them, it will be extremely difficult for any of them to beat Trump in the general election.  It is that simple. 

My objective is to get a better handle on just why the US and particularly here Iowa has such massive continuing Income Inequality Expansion ..... it appears to be predominantly about the relative long-term annual pay raise percentages for the executives of a Company vs the many non-executives employees of a Company, coupled with the stock price appreciation subsequent to the time the company 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 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
Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept
Rockwell Collins 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
Robert Ortberg CEO      10,422        8,073        8,073        7,588        7,588        7,135        7,135        5,829        5,829        4,531
Patrick Allen CFO        3,034        2,467        2,467        2,405        2,405        2,322        2,322        2,245        2,245        2,156
Kent Statler COO Commercial Systems        2,433        2,509        2,509        2,574        2,574        2,497        2,497        2,424        2,424        2,258
Philip Jasper COO Government Systems        2,125        2,190        2,190        2,091        2,091        2,061        2,061        1,981        1,981        1,822
Werner Lieberherr COO Interior Systems  N/A   N/A 
Robert Perna General Counsel  N/A   N/A         1,544        1,372  N/A   N/A     
 Totals       18,014      15,239      16,783      16,030      14,658      14,015      14,015      12,479      12,479      10,767
Annual % Change vs Prior Year 18.2% 4.7% 4.6% 12.3% 15.9%
 5 Year Average Per Year % Change 11.1%
FYE FYE FYE FYE FYE FYE FYE FYE FYE FYE
Sept Sept Sept Sept Sept Sept Sept Sept Sept Sept
Rockwell Collins 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
Robert Ortberg CEO        4,531        2,344        2,344        2,324        2,324        1,987        1,987        2,646        2,646        2,288
Patrick Allen CFO        2,156        2,139        2,139        2,089        2,089        1,719        1,719        2,204        2,204        2,148
Kent Statler COO Commercial Systems        2,258        2,342        2,342        2,279        2,279        1,546        1,546        1,889  N/A   N/A 
Philip Jasper COO Government Systems  N/A   N/A 
Gary Chadick General Counsel        1,449        1,405        1,405        1,371  N/A   N/A     
Clayton Jones Former CEO  N/A   N/A         7,255        7,000        7,000        6,562        6,562        9,074        9,074        7,380
Gregory Churchill Former EVP International  N/A   N/A         2,398        2,253        2,253        2,248        2,248        3,137        3,137        2,787
 Totals       10,394        8,230      17,883      17,316      15,945      14,062      14,062      18,950      17,061      14,603
Annual % Change vs Prior Year 26.3% 3.3% 13.4% -25.8% 16.8%
5 Year Average Per Year % Change 6.8%
10 Year Average Per Year % Change 9.0%