VideoDevine Compensation
John Devine must be a good negotiator.
As you recall, Devine joined General Motors as vice chairman and CFO back in late 2000. Judging by a proxy released on Thursday, Devine did a swell job of negotiating his contract when he joined GM.
According to the proxy, the CFO earned a total of $4.82 million last year. He received a salary of $1.45 million, a $1.5 million bonus, $1.38 million in long-term incentive payouts, and $487,889 in other compensation.
Not bad, considering his boss, CEO Rick Wagoner, received only $2.56 million.
Then again, Devine seems to be earning his money. Earlier this week, GM reported first-quarter revenues of more than $44 billion, about a 10 percent jump in sales from the same period the year before. The company's total net income dropped slightly, however—due in large part to a $407 million aftertax charge from the restructuring of the automaker's European operations.
Devine left his job as CFO at rival Ford Motor back in September 1999 following a management shake-up. At the time, Devine said he wanted "wider responsibilities" elsewhere.
IPO Loses Altitude
ExpressJet Holdings hit some clear-air turbulence on Thursday.
Buoyed by the success of JetBlue Airways Corp.'s successful IPO last week, ExpressJet began trading publicly yesterday after selling 30 million shares. That's 4 million shares more than company management had planned to offer. The offering price: $16 per share. All told, ExpressJet raised $480 million in the largest airline IPO since China Southern Airlines Co. raised $700 million in 1997.
On the first day of trading, the airline's share price traded as high as $17.30. But word midday that a plane crashed into a Milan, Italy, skyscraper sent the stock markets plunging, led by leisure-oriented stocks like airlines.
The share price of ExpressJet, the majority-owned unit of Continental Airlines, finished the day back around its offering price. Consider it a round trip.
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