Top executives at companies that supply the transportation industry felt the jolt of that sector's rocky 1995 in the wallet. Bonuses, usually linked with performance of a company's stock, failed to cushion a compensation drop for officials at six of eight firms listed in Plastics News' 1996 executive pay ranking.
Tarxien Corp. of Toronto, Bailey Corp. of Seabrook, N.H., Douglas & Lomason Co. of Farm-ington Hills, Mich., Durakon In-dustries Inc. of Lapeer, Mich., Donnelly Corp. of Holland, Mich., and Excel Industries Inc. of Elk-art, Ind., all suffered decreases in two-year total returns. The de-clines ranged from Tarxien's 80 percent, to 19 percent at Excel. Two companies - Hexcel Corp. of Pleasanton, Calif., and O'Sulli-van Corp. of Winchester, Va. - were the exceptions, with 181 percent and 22 percent gains respectively.
A demanding North American sales condition, coupled with a General Motors Corp. labor strike, were key elements contributing to weaker profit at the Big Three automakers. Ford Motor Co. earned $4.1 billion, down from $5.3 billion. Chrysler profit of $2 billion was down from $3.7 billion. GM reported a record profit of $6.9 billion, but that was short of a company goal.
As a result, those executives suffered cuts in bonuses. Not surprisingly, top officials at Big Three suppliers failed to escape the bonus ax. Consider the C$500,000 (US$364,300) total compensation of Ralph J. Zam-boni, chief executive officer of Tarxien, which provides custom injection molding, automated assembly and topcoating of thermoplastic parts for North Ameri-can automotive manufacturers. His company's two-year total return fell 80.3 percent; his compensation sank nearly 17 percent.
Total compensation of Douglas & Lomason Co. executives Harry Lomason II and James Hoey dropped 21 and 22 percent, re-spectively. Pay for performance, again, was the main factor, considering Lomason's salary in-creased 7.4 percent and Hoey's, 5 percent. Neither man received a bonus last year, and the Farming-ton Hills, Mich., company did not award any stock options.
The 1996 ranking also shows:
n*The combined salary and bonus of Lon Schultz, Chats-worth, Calif.-based Calnetics Corp.'s president and treasurer of Agricultural Products Inc., in-creased nearly 51/2 times.
n*David A. Schawk's, president and CEO of Schawk Inc. of Des Plaines, Ill., combined salary and bonus decreased 75 percent.