2020 was a challenging year to be a CEO.
But for top executives at metro Detroit's public companies, the year of COVID-19 was also a financially rewarding year.
Total compensation for the 25 highest-paid executives on this year's Crain's list of top-compensated CEOs rose 30.8 percent from their pay in 2019. The average pay package for that group went from $9.6 million to $13.5 million.
Much of that increase was driven by a $28.9 million payment to Rocket Companies Inc. CEO Jay Farner to cover taxes on a stock award ahead of the company's August initial public offering. That brought his pay package to more than $51 million.
But excluding his pay from the calculation still results in a 16 percent average raise for the group, for average compensation of $11.5 million.
Those raises far outstripped national figures compiled by the compensation consultant Equilar and The Associated Press, which found an average increase of 5 percent to $12.7 million among S&P 500 companies.
Farner was not included in the national study because Rocket is not a member of the S&P 500, but his salary would have made him the fifth-highest-paid executive nationally if Rocket were included.
The driving force behind the increase in a year that was branded by COVID-19 difficulties? A roaring stock market that raised the value of stock and options that make up the majority of most CEOs' pay, Equilar said. Cash bonuses declined.
"Because equity compensation drives CEO pay values, a hot market influences larger awards," Equilar's Dan Marcec wrote. S&P 500 stocks saw a return of almost 16 percent last year. Cash bonuses on average actually declined, reflecting business challenges from COVID, Equilar found.
The figures here were compiled for Crain's by S&P Global Market Intelligence from disclosures made by the companies with the Securities and Exchange Commission.
A look at the five highest-paid CEOs and their companies' year in 2020:
The majority of Farner's pay package resulted from a $28.9 million payment to cover taxes on stock units awarded to Farner ahead of the company's August 2020 initial public offering.
Rocket sealed up one of the largest IPOs of the year, with the mortgage giant raising $1.8 billion that valued the company at around $36 billion. In a hot mortgage market, it also posted a handsomely profitable year, with $9.4 billion in net income on revenue of $15.7 billion.
The CEO of the developer of driver-assist systems and autonomous vehicles benefited from an award of restricted stock worth $28.5 million, given to reflect the company's performance over three years.
Aptiv, created by the 2017 split-up of Delphi Automotive plc, saw its sales challenged in 2020 by COVID-19 and a global slowdown in auto sales. Revenue for the company fell 9 percent in what Clark called "a year like no other" in the company earnings announcement.
Barra was the second-highest-paid woman executive in the national study, behind only Lisa Su of chipmaker Advanced Micro Devices. The GM CEO, who is mobilizing the company in preparation for a future of electric vehicles, has received the highest pay of any local public company CEO four out of the past six years.
The Detroit-based automaker booked adjusted net earnings of $9.7 billion, a 15 percent increase, despite a COVID-driven revenue decline.
Hackett stepped down as Ford president and CEO in August 2020 and was succeeded by Jim Farley. Hackett's pay package declined from $17.4 million in 2019 due to serving a partial year.
The former Steelcase CEO's tenure at Ford was marked by broad sweeping redesigns of the automaker's business that were met with mixed reviews, at least on Wall Street, which continued to send Ford's stock price lower.
Dahl spearheaded an eventful year in which the Detroit-based bank sealed a $22 billion deal to be acquired by Columbus, Ohio-based Huntington Bancshares Inc. That deal closed last week and created one of the 20 largest banks in the country by assets.
The majority of Dahl's compensation consisted of $11.2 million in severance payments — he retired following the announcement of the Huntington deal.
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Hot stock market spiked pay for metro Detroit CEOs - Crain's Detroit Business
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