Goodyear needs a solid plan opinion kokomoperspective.com education level graduate

Giti Tire Group of Singapore has announced construction of a new tire plant in South Carolina to initially produce tires for Wal-Mart Stores. The plant will cost $550 million and at full production will employ 1,700 associates. Nokian Tyres Ltd., based in Finland, has announced construction of a plant in Dayton, Tenn. at a cost of $360 million. level 3 higher education Two Chinese companies have announced two new tire manufacturing plants in the southern part of the country, Wanli Tire Co. high school education level Ltd. and Quindao Sentury Tire Co. Hankook Tire Company Ltd. of South Korea has a new plant coming on stream in Tennessee, and Continental A.G. of Germany is in the process of completing construction of a new plant in Clinton, Miss.

With the addition of these foreign plant manufacturing facilities in the United States, 16 foreign based tire manufacturing operations will exist in the United States.

Requirements for tires in the United States is static, therefore new foreign operations will take market share from present domestic tire producers. In other words, Goodyear will be the most vulnerable with Goodyear losing the most volume based on past and present performance.

This should make Goodyear extremely nervous about loss of sales and market share because under the leadership of Chief Executive Officer Richard Kramer the company lost sales volume averaging $1.5 billion per year for the last five years. level of education secondary 16 19 years Kramer is only 53 years of age. If he remains CEO until age 60 and Goodyear continues to lose sales at the present pace, sales will be approximately $7 billion in 2023 versus 2016 sales of $13.645 billion, or 50 percent less. The loss of sales volume has continued in 2017.

With sales volume decreasing exponentially, $1.5 billion per year for the past five years, one has to wonder if sales are a part of CEO Richard Kramer’s goals and objectives. average education level in us In spite of losing $1.2 billion in 2016, a study by Automotive News/Equilar CEO Compensation showed CEO Kramer’s 2016 bonus and incentive plan compensation were the highest among 40 United States based automotive CEOs at $9,667,094. In addition, his stock award gains were $2,681,584. Total compensation in 2016 for CEO Kramer was $13,748,236, which placed him in ninth position of 40 U.S.-based automotive CEOs. Quite a reward for drastically reducing a company to a shell of its former self.

What do shareholders think about the year over year loss in sales? Better yet, where are the board of directors? In CEO Kramer’s goals and objectives what weight is given to sales? At what level does the company stop hemorrhaging sales and what is the plan for recovering lost sales? Looking at five-year results, there seems to be no plan for Goodyear.

Goodyear shareholders evidently don’t have an awareness of how compensation committees, a sub-committee of the board of directors, set goals and objectives for CEO executive compensation. Boards of directors have a fiduciary responsibility to shareholders, not to the CEO. How does the board of directors at Goodyear justify awarding CEO Richard Kramer a total compensation package of almost $14 million based on Kramer’s job performance?