Payday for Raytheon CEO
With pay cut, Gregory Hayes still made $21 million in 2020.
The chief executive officer of Raytheon Technologies Corp., the Massachusetts parent company of Pratt & Whitney, took a 20% pay cut last year as COVID-19 slammed the conglomerate’s aviation business, but stock and option awards pushed his compensation to nearly $21 million.
CEO Gregory Hayes was paid a $1.4 million salary ,$2.5 million bonus, more than $14.5 million in stock and option awards, t he value of personal use of corporate aircraft, pension contributions and other compensation, according to a regulatory filing Friday.
Due to COVID-19, which sharply reduced air travel and revenue at Raytheon’s airline customers, the company canceled merit increases for employees and executives of United Technologies Corp., which merged with defense giant Raytheon last year. It also cut salaries between June and December by 10% at Collins Aerospace, Pratt & Whitney and corporate employees
At Hayes’ request, Raytheon said it cut his base salary for the six months by 20%.
Raytheon’s compensation committee cited Hayes’ work spinning off heating and cooling equipment manufacturer Carrier and Otis Elevator into publicly traded companies, completing the UTC-Raytheon deal and navigating the “unprecedented industry and business challenges of the COVID-19 pandemic.”
Hayes’s total annual compensation last year was 193 times the median pay of about $109,000 for Raytheon employees, the company said.
United Technologies and Raytheon closed on the merger in April 2020, 10 months after the deal was announced and coinciding with the onset of COVID-19. Within days of the closing, Hayes told employees that air travel was down96%, forcing Raytheon to cut pay and impose furloughs.
By the fall, he told investor analysts that Raytheon cut 16,500 jobs worldwide.
Raytheon’s defense business is strong, but its two commercial aviation businesses took a financial hit. Adjusted revenue at Pratt & Whitney last year was $17.2 billion, down nearly $3.7 billion from 2019, a drop of 18%.
At Collins, adjusted sales were $19.4 billion, down $6.6 billion, a drop of one-fourth from 2019. Profit dropped by 70%.
Raytheon has said it does not expect airline travel to return to 2019 levels until at least 2023.