Two subsidiaries of Farmington-based United Technologies Corp. are shutting heating and ventilating parts manufacturing plants in Indiana, eliminating more than 2,000 jobs as operations move to Mexico.United Technologies CEO Gregory Hayes garnered an individual performance highlight for 2015. The board praised him for his:
Carrier, a manufacturer of heating, ventilating, air conditioning and refrigeration, said it will relocate its Indianapolis manufacturing operations to a site near its manufacturing plants in Monterrey, Mexico, over three years beginning in 2017.
Rigorous commitment to a disciplined capital allocation strategy, evidenced by the $12 billion we returned to shareowners in 2015 through dividends and share repurchases (including the $6 billion accelerated share buyback program announced in November 2015)Hayes' disciplined capital allocation strategy earned him over $10.7 million in executive compensation for 2015. That's significant capital allocated to his personal pocketbook at the expense of other company workers.
Hayes' accelerated stock buyback program will reduce public float and increase UTX's earnings per share numbers, which factor into Hayes' executive incentive pay via his bonus and performance share units (PSU), which comprise 79% of his annual compensation:
The 2015 EPS results of $8.61 per share included discontinued operations and the gain realized from the sale of Sikorsky Aircraft. The Committee excluded discontinued operations from EPS, which includes this gain, for PSU vesting measurement purposes. This resulted in an EPS from continuing operations of $4.53. The Committee made additional adjustments to exclude restructuring, non-recurring, and other significant, defined items unrelated to operational performance (see Appendix B on page 86 for details), resulting in an adjusted EPS of $6.30 and a vesting factor of 88%.Move 2,100 jobs to Mexico at $3 an hour and how much might CEO Hayes earn in performance share units? The global race to the bottom only applies to worker pay and benefits. Executives stack each others' boards and dole out a plethora of high priced goodies. In the case of UTX perks include an executive physical, leased car and $16,000 for financial planning.
How much will the Monterrey shift enrich Gregory Hayes pay?