There were some raised eyebrows after Ford CEO Alan Mulally raked in $26.5 million in 2010, even after the company realized a healthy profit and significantly improved sales. But while Mulally got a big check for being instrumental in the company's high-profile turnaround, he wasn't even the highest paid CEO in Michigan.
Automotive News is reporting that Visteon CEO Donald Stebbins pulled in $26.9 million in 2010, due in part to stock received as part of the supplier's bankruptcy reorganization. Stebbins' total compensation included a $21.2-million stock award, which was bolstered by the fact that shares of Visteon stock went from $49 in October to $66.90 at the end of last week.

Stebbins isn't the only Visteon executive to get a fat payday in 2010, as CFO William Quigley took in $11 million in compensation and VP Joy Greenway banked another $6 million. Executives weren't the only ones to benefit from Visteon's bankruptcy, either. Bondholders received shares that are currently worth $3 billion; a reported profit of $1.9 billion beyond their original investment.

Shareholders weren't so lucky. Visteon's old shares were canceled as part of the bankruptcy, and those shares were replaced with only one million of the new shares, or 2.5 percent of the company. That's about 61 cents per share of the old stock.

You can probably guess that the old shareholders feel slighted by the agreement. One unnamed source told Automotive News that it was unfair for Visteon executives to receive an alleged $114 million in total compensation for steering a company to bankruptcy. What say you?


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  • 13 Comments
      David Garfunkel
      • 4 Years Ago
      This is simply legal money laundering. The executives at companies that find themselves in the situation Visteon was in, hire powerful (well connected with our current Presidential admin. & Treasury) DC and New York law/lobbyist firms which conspire with investment bankers to blank out the old capitalization and create a new corporate entity. Everyone gets rich while the stockholders and employees get the shaft. This deal was probably cut over a nice lunch.
      ..
      • 4 Years Ago
      And some think that only government rewards failure.
      peteMT
      • 4 Years Ago
      Not just financially bankrupt, but morally and ethically bankrupt as well. The executives did what they do best in contemporary American business - see to their own reward at the expense of the 'little people'. Repulsive, disgusting, and worthy of a lawsuit from organized shareholders.
      Jew
      • 4 Years Ago
      So whats new in this country? Rich taking advantage of the poor is the American way.
      Essex Boy
      • 4 Years Ago
      with the Visteon UK pension fund left high, dry and broke to the tune of $550million after Visteon Corporation failed to fund or do more than strip the business and not to returning people & factories to Ford in 2005 as they did in the US. This payment for such dubious business dealing is a foul stroke.
      • 4 Years Ago
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      michael
      • 4 Years Ago
      Visteon has been a sick company ever since Ford spun it off. It was hovering near bankruptcy for years. The downturn was just the final push it needed to go into bankruptcy. It does seem ridiculous that the C.E.O. is the highest paid one in Michigan. He's only been the C.E.O. since 2008, so most of its problems pre-date his ascension.
      Toneron
      • 4 Years Ago
      This is precisely what is wrong with the system - and what gives capitalism a bad name.
      Jeffrey Smith
      • 4 Years Ago
      I believe this company was a supplier, I also believe due the bankruptcy of Chrysler and GM which no longer had to pay back bills, it stands by logic that many suppliers got shafted after GM and Chrysler bankruptcy... Who is really at fault and why wouldn't they get a bonus if they got the company through hard times.
      • 4 Years Ago
      [blocked]
      • 4 Years Ago
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      td284
      • 4 Years Ago
      Typical modern American corporate culture. Screw the employes, screw the stockholders, enrich the executives to a ridiculous degree. I'm sure the taxpayers got a hit somewhere in there too. And yet, all the political focus is on how teachers and unions are ruining the country.
        MTU 5.0
        • 4 Years Ago
        @td284
        This isn't typical behavior. And while I think Mulally deserved his compensation, I will agree that Stebbins seems to have been grossly overpaid given that the company went bankrupt.
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