By Bob Tita, Of DOW JONES NEWSWIRES CHICAGO -(Dow Jones)- Navistar International Inc. Chairman and Chief Executive Daniel Ustian's total compensation for fiscal year 2010 rose 27%, reflecting improved market conditions for the commercial truck and engine maker. Ustian's base salary, incentive pay, executive perks and awards of stock and options totaled $8.43 million for the year ended Oct. 31, compared with $6.64 million the year before, according to a regulatory filing late Wednesday with the U.S. Securities and Exchange Commission. The cash portion of Ustian's compensation rose 32%, as a result of a $1.94 million bonus given to him in recognition of managerial decisions and strategic initiatives "to develop a business model that provides profitability at the bottom of the business cycle." The Navistar board specifically credited Ustian for creating the company's military truck business in 2004. Navistar hadn't built vehicles for the U.S. military since Korean War. But revenue from military trucks, which reached $3.9 billion in 2008, helped the company withstand a severe drop in commercial trucks sales in recent years. The board also alluded to Ustian's leadership on resolving protracted disputes with suppliers and guiding the company through the termination of an engine-supply contract last year with Ford Motor Co. (F). The company had provided diesel engines for Ford pickup trucks since the 1980s. Ustian, 60, has headed the Warrenville, Ill., company since 2003. For the year ended Oct. 31, the Illinois based company earned $223 million, or $3.11 a share, compared with $320 million, or $4.46 a share in fiscal 2009. Last year's results benefited from a one-time gain from the end of the Ford engine contract. Overall revenue in fiscal 2010 rose 5%, to $12.1 billion. The company expects demand for trucks in fiscal 2011 to strengthen from rising freight volumes in an improving U.S. economy. Ustian's equity awards were worth $3.31 million on the day they were granted, up from $2.77 million a year earlier. Navistar's stock price has climbed nearly 50% since January. The value of Ustian's deferred pension benefits, which wasn't included in his annual compensation calculation, increased to $1.04 million from $883,752 the year before. Navistar's stock ended Wednesday's regular trading session down 3.38%, or $2, at $57.17 a share. -By Bob Tita, Dow Jones Newswires; 312-750-4129; email@example.com
(END) Dow Jones Newswires 12-22-102129ET Copyright (c) 2010 Dow Jones & Company, Inc.
Have you stock holders thought that there must be collusion between the B of D's and upper mgt. The out rageous salary and benefits paid to upper mgt and board members are unjust. CEO's and other mgt receive up to 2,000 times the entry salary of employees. Remember, this waste drastically cuts into the amt of dividends paid.