Gregory Hayes, the top executive for United Technologies Corp., received a 16.9% jump in total compensation to $21.54 million in fiscal 2019, the company said in a filing released Friday.
UTC has about 1,500 employees in Winston-Salem with its Collins Aerospace division, and has about 2,500 overall in North Carolina. UTC will hold its annual shareholder meeting April 27 in McLean, Va.
The company projected Wednesday its megadeal for Raytheon Co. would occur after the stock market closes April 3 — simultaneous with the conclusion of spinning off its Carrier and Otis divisions.
UTC’s proposed purchase of defense-industry giant Raytheon, announced June 9, involves a deal currently valued at $130 billion. UTC shareholders would own 57% of the combined company.
Hayes, UTC’s chairman and chief executive, received a 1.6% increase in salary to $1.6 million, along with a 20% jump in his bonus to $4.2 million. He received stock and stock-option awards valued at $13.35 million on the date they were awarded.
All other compensation was valued at $314,799, down 33%. It included: $173,520 in company contributions to a non-qualified retirement plan; $59,224 in value for the personal use of company aircraft; $50,843 for a company-paid leased vehicle; $18,762 in company-paid health benefits; and $10,080 in company-matched 401(k) benefits.
For fiscal 2019, UTC reported a 5% increase in net income, to $5.54 billion. Adjusted net income was $7.14 billion.
Kelly Ortberg, Collins Aerospace’s chief executive during 2019, received $1.21 million in salary, a $2.2 million bonus, stock awards worth $6.15 million on the date they were awarded and $356,873 in all other compensation that included $136,090 in relocation benefits, and $130,057 in company contributions to a non-qualified retirement plan. Total compensation fell 1.4% to $10.16 million.
Ortberg’s 2018 compensation for Rockwell Collins was not disclosed. Ortberg stepped down Feb. 7 to become a special adviser to Hayes.
David Gitlin, president and chief executive of Carrier, received a 7.4% raise in salary to $966,667, a $1.2 million bonus and total compensation to $7.74 million.
Robert McDonough, special advisor to Gitlin, received a 4.8% increase in salary to $962,500, a $600,000 bonus and total compensation of $10.04 million.
Akhil Johri, who became a special adviser to Hayes in 2019, received a 5.3% raise in salary to $937,500, a $1.9 million bonus and total compensation of $8.23 million.
Judith Marks, president of its Otis division, received a 10.1% increase in salary to $956,250 in salary, a $1.5 million bonus and total compensation of $6.96 million.
Neil Mitchell Jr., acting chief financial officer, was paid $591,667 in salary, a $700,000 bonus and total compensation of $3.58 million.
There are two shareholders proposals on the ballot.
The first would advise the UTC board to amend the bylaws to require only needing a simple majority of votes to approve changes to its charter, bylaws and governing documents.
The current company bylaws require a vote of 80% of its outstanding shares to “approve certain business combinations with a party that owns at least 10% of its stock.
UTC’s board of directors said it would not make a recommendation
The second would require the board to create a committee, featuring management and rank-and-file employees, to prepare a report on the impact of closing manufacturing plants on the local communities in which the plants are located. The report would require recommendations for mitigating the impact on plant closings.
The board recommended voting against the proposal, in part because of UTC’s job growth of nearly 37,000 U.S. jobs since 2015.
It said the “net growth in U.S. jobs across UTC over the prior five years has provided opportunities for employees impacted by restructuring to pursue positions in other parts of the company.”