Continuing AK Steel Coverage
This newspaper is committed to providing the best coverage of one of Butler County’s largest employers, AK Steel Corp., a steelmaker that employs thousands locally and has strong ties to the local economy.
AK Steel 2012 executive compensation
James Wainscott, chairman, president and CEO
Total compensation: $8,687,258
Base salary: $1,150,000
Albert Ferrara Jr., senior vice president of corporate strategy and investor relations
Total compensation: $1,453,789
Base salary: $536,250
David Horn, executive vice president, general counsel and secretary
Total compensation: $1,166,124
Base salary: $637,500
John Kaloski, executive vice president and operating officer
Total compensation: $1,635,668
Base salary: $565,000
Roger Newport, vice president of finance and chief financial officer
Total compensation: $1,405,646
Base salary: $335,909
Lawrence Zizzo Jr., vice president of human resources
Total compensation: $1,054,110
Base salary: $340,000
Executive officers of AK Steel Corp. have not received merit raises since January 2010, and won’t again this year, mainly due to the company’s financial performance, according to the steelmaker’s proxy statement filed Friday.
Some top executives have received raises since 2010 because of promotions, but no merit raises have been awarded. In the filing with the U.S. Securities and Exchange Commission, AK Steel’s management development and compensation committee said base salary, once set, is not directly linked to the company’s performance. But performance is “strongly” considered when setting salaries each year.
AK Steel is Middletown’s largest employer.
“Due to the continued impact on the company’s financial performance of the severe recession which started in the fall of 2008, the base salary of the company’s CEO remained at the same level for 2010, 2011 and 2012 and has been set again at that level for 2013,” reads the 86-page proxy statement. “Similarly…there have been no merit increases to the base salaries of the non-CEO named executive officers.”
The compensation committee consists of some directors on AK Steel’s 10-person board of directors.
The publicly-traded company files every year a proxy statement to invite stockholders to the upcoming annual meeting (May 30) and present information about items stockholders will vote on.
James Wainscott’s salary remains unchanged at $1,150,000 a year. He is chairman, president and chief executive officer of AK Steel. He became president and CEO in 2003, and was later named chairman.
Other top officer salaries are: Albert Ferrara Jr., senior vice president of corporate strategy and investor relations, who received a salary of $536,250 in 2012; David Horn, executive vice president, general counsel and secretary, received $637,500; John Kaloski, executive vice president and operating officer, received $565,000; Roger Newport, vice president of finance and chief financial officer, received $335,909; and Lawrence Zizzo Jr., vice president of human resources, received $340,000 last year, according to the proxy.
AK Steel’s total compensation program also includes stock awards and options, incentive payouts and benefits.
The recent economic crisis was the worst recession since the Great Depression, the compensation committee wrote in the proxy statement. AK Steel in 2012 continued to be affected by a slow economic recovery in the U.S. and worldwide. In the U.S., the Butler County manufacturer faced heightened competition last year from imports and domestic producers with new or expanded facilities or under-used existing facilities, the proxy reads in explaining compensation levels.
As a result of missing financial targets from 2010-2012, the company has not paid long-term incentive payouts the last three years. Long-term incentives are based on meeting thresholds for earnings before interest, taxes, depreciation and amortization, total stockholder return during the three-year time period relative to a stock index, and stock price growth.
Executives received some short-term annual incentives for meeting safety targets. Annual incentives are based on net income, as well as safety and quality.
Wainscott’s total compensation in 2012, including pension benefits, was $8,687,258.
AK Steel in 2012 recorded a net loss of approximately $1 billion, the fourth consecutive annual loss. The stock price in April reached a new year-long low of $2.88 per share. The 52-week range now sits at $2.88 to $7.74.
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