Lithia Motors Inc. founder Sid DeBoer is stepping down as an executive officer of the company and will take a massive pay cut -- for life.
DeBoer, 72, will remain executive chairman. But starting Jan. 1, he will receive $1.05 million and a $42,000 car allowance and insurance reimbursements (which totaled $64,000 in 2014) each year for the rest of his life.
That's down from the combined compensation of about $3.2 million DeBoer had received each of the past three years, Lithia said in a Securities and Exchange Commission filing. That includes deferred compensation and long-term incentive plan contributions.
In addition, because DeBoer will continue to serve as chairman of the board, he will receive the same pay Lithia pays its board members, which will be $210,000 this fiscal year. But he no longer will be eligible for the performance bonuses paid to company executives.
DeBoer founded the Medford, Ore., dealership company in 1968 and took it public in 1996. Lithia ranks No. 8 on the Automotive News list of the top 150 dealership groups in the U.S., with retail sales of 91,192 new vehicles in 2014.
DeBoer's son, Bryan, became CEO of the company in May 2012.