DETROIT -- Seating and electronics supplier Lear Corp. this week gave CEO Bob Rossiter a 13.6 percent bump in his base pay and extended his contract until Dec. 31, 2010.
The company raised Rossiters annual base salary to $1.25 million and said he would eligible for an annual bonus of at least 150 percent ($1.875 million) of his base salary, according to a company filing today with the U.S. Securities and Exchange Commission.
Another filing said Rossiter this week received 89,625 shares of stock appreciation rights and 29,874 restricted stock units.Rossiter and Lears board during the past year led an unsuccessful effort to take Lear private with a friendly $2.9 billion buyout offer from famed Wall Street investor Carl Icahn. In July, Lear shareholders rejected the deal by a wide margin, saying Lear could be worth more money to investors by remaining a publicly traded company.
Despite the defeat, Rossiter remains on good terms with his board. In its Nov. 15 letter to Rossiter, the Lear board said it wanted to ensure management continuity.
The board told Rossiter it had determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the companys management, including yourself, to their assigned duties.
Rossiter led a massive restructuring of Lears business in the past few years. Lear has returned to profitability, posting net income of $214.5 million during the first nine months compared with a net loss of $62.5 million during the same period a year go.
Even with his bump in base pay, Rossiter already has earned considerable compensation from the supplier.
During the 2006 fiscal year, Rossiter collected a base salary of $1.1 million, a bonus of $132,000, stock awards valued at $2.5 million, options valued at $944,000 and a variety of other compensation. In total, the company valued his total 2006 compensation package at $6.3 million.
Lear, of suburban Detroit, ranks No. 7 on the Automotive News list of the top 100 global suppliers with original-equipment automotive parts sales of $17.84 billion in 2006.