Much has been made about the $0 salary of Ally Financial Inc. CEO Michael Carpenter over the last few years.
Truth be told, he earned nearly $10 million in deferred compensation last year, just as he has in recent years. Now, with Ally Financial announcing today that it is planning an initial public offering, this question is all the more relevant: Did Carpenter earn it?
The company’s S-1 filed today in preparation for its upcoming IPO delineates Carpenter’s compensation goals. So what were these goals for 2013? They included “growing the automotive services business,” “improving competitiveness,” and finishing the separation from legacy businesses. His actual accomplishments at Ally in 2013…
- Increased originations;
- Won an Auto Finance News Excellence Award (we’re not kidding; it’s in the S-1 on P146);
- Had its Ally Bank named best online bank by Money magazine for a third consecutive year; and
- Repaid $5.9 billion to the Treasury Department.
Not a bad year.
Despite the rich compensation, Carpenter still might have reason to feel envious. Thomas Dundon, the CEO of Santander Consumer USA, earned $85.2 million in 2013, including option awards.
Compensation for other Ally executives was also listed in the filing. All of them are compensated primarily in deferred stock. Most executives saw increases in their deferred stocks awards while their salaries stayed flat. Former CFO Jim Mackey is listed as having received less money than in previous years, but that is due to his leaving the company in 2013.
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