DETROIT, June 27 American Axle & Manufacturing
Holdings Inc (AXL.N) has paid Chief Executive Dick Dauch an
$8.5 million cash bonus for his "leadership role" through an
acrimonious three-month union strike that ended with a
concessionary contract that slashed factory wages.
American Axle, whose stock has fallen nearly 55 percent in
2008, disclosed the cash bonus, a 10 percent base pay increase
for Dauch and additional stock and options awards in a filing
late on Friday with the U.S. Securities and Exchange
The board's compensation committee said it made the cash
bonus award after "taking into account American Axle's strong
financial performance in 2007, the structural transformation
achieved under our new labor agreements with the UAW, and ...
Dauch's leadership role in these negotiations."
Dauch's 2007 salary was nearly $1.5 million. He was awarded
150,000 stock options and 59,192 shares of restricted stock
that vest over three years to March 14, 2011.
His employment agreement entitles Dauch to an annual bonus
of three times his salary if the company outperforms
competitors by greater than an historical amount, according to
the SEC filing.
The board's compensation committee also awarded other
American Axle top executives annual bonuses in excess of what
they would have earned based solely on financial targets.
The committee also approved a 15 percent salary increase
for David Dauch, son of Dick Dauch, based on his promotion to
president and chief operating officer, and salary increases of
4 percent to 6 percent for other officers.
American Axle spokeswoman Renee Rogers said the bonuses and
pay increases reflected the company's need to remain
competitive and to retain top executives.
(Reporting by David Bailey; editing by Carol Bishopric)