U.S. Steel Chief Executive Officer Mario Longhi saw his overall compensation decline by 35 percent in 2015 after the company lost $1.5 billion.
Longhi’s total compensation fell to $8.6 million last year, as compared to $13.2 million in 2014, according to U.S. Steel’s proxy statement filed recently with the U.S. Securities and Exchange Commission.
The CEO’s base salary actually rose from $1.1 million in 2014 to $1.4 million last year, as his 2015 salary was tied to company profit earned in 2014. But he saw a $1.7 million decline in the value of his stock compensation because of the dramatic fall in the company’s stock price in 2015.
Longhi also did not receive an incentive award for 2015 because the Pittsburgh-based steelmaker failed to meet financial targets. In 2014, he reaped a $4 million incentive award.
Other top executives also missed out on cash incentives after the company failed to hit cash flow and earnings goals amid a global import crisis.
Executive Vice President and Chief Financial Officer David Burritt saw his pay decline to $2.9 million last year from $4.9 million in 2014. General Counsel and Senior Vice President Suzanne Folsom received $2.1 million in pay last year, down from $3.5 million the previous year, according to the proxy statement.
Senior Vice President-Industrial, Service Center and Mining Solutions Douglas Matthews had his pay cut by more than half, earning $1.76 million last year as compared to more than $4 million in 2014.
In 2014, Longhi guided the struggling company to its first annual profit since 2008, with his “Carnegie Way” cost-cutting drive. But U.S. Steel lost money for the fifth time in six years in 2015 while its stock plunged 70 percent after a record amount of cheap imports flooded the U.S. market. ArcelorMittal, Northwest Indiana’s other major steelmaker, lost nearly $8 billion worldwide under the same market conditions, which were widely attributed to the record 112 million tons of steel China exported after its domestic economy slowed.