Group 1's Hesterberg Preserves Pay as Performance Improves
Group 1's Automotive Inc. paid CEO Earl Hesterberg $3.3 million in 2009 -- about the same as he made the prior year -- as the retailer ended losses and its stock price tripled, Automotive News reported.
Group 1, the fourth-largest U.S. dealership group, trimmed Hesterberg's $1 million base salary and the salaries of other top executives by 10 percent in February 2009. But the bonus paid to Hesterberg rose, from $200,000 in 2008 to $1 million in 2009.
Hesterberg also earned stock awards valued at $1.1 million, down from $1.9 million in 2008. Group 1 noted that Hesterberg has not yet realized any actual value from the 2009 stock awards. They won't begin to vest until 2011.
Group 1 rebounded from a 2008 loss of about $48 million. The retailer posted net income from continuing operations of $34.8 million in 2009. Group 1's stock price increased from about $10 at the beginning of 2009 to about $30 by year-end.
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