Posted: 12/17/2024 03:49 am
In recent years, Worthington Industries, Inc. (WOR) has displayed a dynamic compensation strategy reflective of its executive leadership's contributions to the steel industry. Focusing on the years 2020 through 2024, a closer examination reveals the firm's evolving approach to incentivizing its top executives.
Joseph B. Hayek, the current Executive Vice President and Chief Financial & Operations Officer, received a total compensation package of $5,665,727 in 2024. This composition included a base salary of $529,471, a bonus of $937,200, stock awards worth $2,708,391, and option awards totaling $150,510, excluding zero contributions to incentive plan compensation. Notably, Hayek's earnings in 2024 signify a substantial increase from his previous role as Vice President and Chief Financial Officer in 2020, when his total compensation was $3,610,038. At that time, his salary was considerably lower at $322,269, although he received comparable stock awards of $2,847,190^1^.
B. Andrew Rose, who served as President and Chief Executive Officer in 2023, attained total compensation of $7,279,786. This package featured a base salary of $735,038 and a bonus of $1,047,900, supplemented by stock and option awards worth $2,246,806 and $415,798, respectively. Rose's total pay marked the pinnacle of executive remuneration within the analyzed period, likely indicating his critical role in navigating the company's strategic direction amid economic uncertainties^2^.
In 2022, Geoffrey G. Gilmore, then the Executive Vice President and Chief Operating Officer, received a slightly lower compensation bundle tallying $3,961,471. Gilmore's package was characterized by a $630,669 salary and a significant bonus of $1,550,001. Unlike the other executives, his stock awards were relatively modest at $601,900, suggesting perhaps a different structuring of gains or performance-based allocations^3^. Interestingly, back in 2018, Gilmore's compensation was limited to a bonus of $525,672, indicating perhaps a period of performance review or transition within the company^4^.
The structure of executive compensation at Worthington Industries underscores an apparent strategy of rewarding tenure and elevated roles with incrementing pay structures, despite fluctuating stock awards. Current market conditions reflect a similar fluidity. As of now, the stock stands at $38.68, a significant decrease from its year-high of $69.96, hinting at broader market pressures influencing investor sentiment and potentially impacting future compensation structures^5^.
Overall, Worthington Industries exemplifies a complex compensation scheme where bonuses and stock awards play pivotal roles, especially in a competitive and cyclical sector such as steel manufacturing. This strategic compensation approach ensures alignment with both company performance and individual contributions, aiming to attract and retain top talent pivotal to navigating ever-changing market conditions.
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1. Joseph B. Hayek 2024 compensation data from the SEC archive: https://www.sec.gov/Archives/edgar/data/108516/000095017024096936/0000950170-24-096936-index.htm
2. B. Andrew Rose 2023 compensation data from the SEC archive: https://www.sec.gov/Archives/edgar/data/108516/000095017023042714/0000950170-23-042714-index.htm
3. Geoffrey G. Gilmore 2022 compensation data from the SEC archive: https://www.sec.gov/Archives/edgar/data/108516/000156459022029449/0001564590-22-029449-index.htm
4. Geoffrey G. Gilmore 2018 compensation data from the SEC archive: https://www.sec.gov/Archives/edgar/data/108516/000156459020039713/0001564590-20-039713-index.htm
5. Current stock price and company financials sourced from the latest market data.
