Outgoing Union Pacific CEO receives $2.4 million bonus
OMAHA Union Pacific’s outgoing chief executive *** Davidson received a $2.4 million bonus for 2005 on top of his $1.4 million salary, according to an Associated Press story in the Houston Chronicle. Union Pacific gave bonuses to all five of its top executives last year, according to a filing with the Securities and Exchange Commission Friday. No bonuses were awarded in 2004.
Davidson, who remains chairman of the board, stepped down as corporate president and chief executive officer of the railroad company in January. He also received 616,336 stock options. Jim Young, who succeeded Davidson as president and chief executive, received a $1.25 million bonus along with his $575,000 salary. Young received 249,036 stock options.
[:X][:)] I have a feeling that with those perks he didn’t turn around, pull his pants down, bend over and tell 'em where they can start kissing! [:X][:)]
One has to wonder if *** Davidson is auditioning for what looks like an upcoming vacancy in the US Treasury, as the ways are being greased for the departure of the “SNOW Boat” ??
What’s the point being made? In the past year the market value of UP’s shares went up by about $8 billion. Mr Davidson’s employers, the shareholders, are rewarding him for this increase in their wealth. $2.4 million is chump change in comparison. If I were a shareholder, I’d say that was more than a fair return. After all, he takes responsibility for the company’s overall performance.
Well said, eastside. It’s easy for us po’ folks to forget that some guys do very well with great responsibility and should benefit therefrom. Where they leave me is when CEOs of companies that tank get similar rewards.
Jim,
I wouldn’t be in the least surprised if he replaced Snow. He was in the Portland Area on Amtrak Irnonically enough lets just say the Train was ontime. Maybe he should ride more.
This borders on criminal. Davidson so much to harm the UP franchise and UP customers in the last 5 years… all in the name of short term profits to boost exec bonuses. The sale of Overnite was about a short term bump as was the failure to hire to replace 5,000 retiring crew members. Longer term, UP took a big hit to earnings for that stunt, but Davidson’s short term bonuses made it worth it. Meanwhile the customers endure record high rate increases and near record poor performance. Funny how that doesn’t factor into the bonus formula. It will be good riddance once UP is fully rid of him.
I’d guess that’s because health costs have soared. That’s not UP’s fault. I’m not familiar with their health plan, but I suspect the company is probably eating some of the increases, anyway.
The hard fact is that compensation is determined by market demand – managerial skills, such as leadership, business acumen etc. are in high demand – not because you’re a honest, hard-working, decent human being, which I’m sure you are. Good executives who can perform year after year are rarer than rock or movie stars, which is why some executives are paid like them.