Dana lost over $500M, paid ex-leader $7.5M
By LARRY P. VELLEQUETTE
BLADE BUSINESS WRITER
Toledo's largest company, Dana Corp., finished its final year of bankruptcy protection by losing more than half-a-billion dollars while paying its former chief executive almost $7.5 million.
The company made several revelations in its annual financial report to the U.S. Securities and Exchange Commission. Dana officials are to talk with analysts tomorrow. The management also disclosed:
•The Toledo auto parts maker is sitting on more than $1 billion in cash.
•Toyota Motor Corp. is Dana's third largest customer, behind Ford Motor Co. and General Motors Corp.
•It paid former CEO Mike Burns almost $7.5 million in 2007, including $5.5 million in bonuses for guiding the company through bankruptcy.
•The Fortune 500 company plans to close or sell two more plants in Canada and further reduce its work force this year and next, saving $60 million.
•It shaved $80 million annually from its labor costs by renegotiating its labor contracts during bankruptcy, and another $90 million by shifting responsibility for retiree health care to a voluntary employee benefits association.
"What's the matter hippy ? You loose some money?'
...lost a few $$$, but saved my ass at tax time on the others I made boo-coup on....thank you!
"I see the company has 28 million shares in the treasury. You could pick some up!!"
...no frickin way. Dana's done in my life. The only thing I pick up is your daughter on Dorr and Reynolds.
This article was incorrect. It said DCNAQ shares are virtually worthless-NO there ARE worthless
Furthermore, I am curious as to how a company gives its shareholders (owners of the company) nothing cancels the shares but is sitting on around a billion in cash?????????
How does a CEO whose primary job is to maximize shareholder value walk away with over 7 million in compensation for driving the company into bankruptcy
the company continues to work with the SEC according to the article-HA I don't see how this CEO and BOD is any better than ENRON, WORLDCOM, ADELPHIA
someone please tell me the difference
DANA was late in emerging from bankruptcy protection missing its own deadline then without notice cancels its shares on FEB 1, 2008
beware of same thing happening with DPHIQ?
this company has lost all credibility
it lied to its shareholders, diligently worked against our interests and its own employees interests
it projected a value of $22 a share and its now at $9
wonder why, I guess there is noone in a hurry to have their money stolen again
The "EX" shareholders had there chance to effect change with the former BOD. Unfortunately, the largest holders, the institutions, and the individual shareholders, many of which were employees, didn't act in time. The former BOD allowed an acting Chairman to lead the BOD to replace a deceased CEO with a GM executive the had lead GM Europe to a record loss and at the same time to an individual whose lifetime culture at GM was totally unable to fit into Dana's culture! People just did not understand that Dana had a culture so unique to them that not just anyone could lead the Dana Team. There are other companies that have the same situation. Nike and Apple have such ingrained cultures that only Phil Knight and Steve Jobs have been able to successfully lead. To change cultures take time and a reason to change. Hiring a GM executive who comes from a company that hasn't done anything spectacular since the 60's was an enormous mistake! So..........Mike Burns was the wrong person at a critical time who ended up making huge mistakes. Focus on the future of the great people at Dana who still remain, forget what Burns received. Be happy that the new BOD got rid of him!
i hope we get a lawsuit going ,this is a classic bankruptcy ,lie to shareholders,give yourself a huge payout , rip off the shareholder,
screw the employee ! put me down on the law suit! what a sorry company ,who in there right mind would invest in them?
I didn't own any shares,thus I didn't loose! I was an employee and dependant on the pension for a small portion of my income.
It's uncertain how Dana will do going forward. This is a reason to avoid the stock,at this time,for me.
The company is not transparent. So what is the current management hiding?? They wouldn't be the 1st group to lie by omission.
They kind off found loopholes in the bankruptcy laws. Can they pay ALL the bills going forward into a recession?? These and other questions are serious from a small investors standpoint.
Analyst Opinion equals nothing on Yahoom!
Most of the new stock is in the hands off the creditors. As for the factory rats they probably sell the day they get their shares.
I did! A bird in the hand is worth two in the bush and my kids were in school.