Dana Corp. wants to give CEO Mike Burns a $6 million bonus if he can steer the troubled driveline parts supplier out of bankruptcy - or simply sell the assets of the 102-year-old company.
In total, Dana is seeking approval to pay Burns and five other executives $10.3 million if the company can exit bankruptcy, according to a proposed compensation plan filed June 29 in U.S. Bankruptcy Court in New York.
The plan must be approved by U.S. Bankruptcy Judge Burton Lifland. A hearing is scheduled Wednesday, July 19.
Burns is in line for a $6.0 million bonus payable in two installments if Dana emerges from Chapter 11 reorganization. He led Dana, of Toledo, Ohio, for two years before its bankruptcy filing on March 3.
In addition, the plan proposes to pay him $1.0 million in annual salary. Further, he could get a bonus of $2.1 million for 2006.
In 2005, Burns collected $2.3 million. The median annual compensation of industry CEOs was $3.3 million in 2005, according to an Automotive News study.
Burns took over Dana in March 2004, after a 34-year General Motors career in which he rose to head of GM Europe.