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Lithia Motors Inc. CEO Bryan DeBoer's total compensation dwarfed the auto retail competition in 2023.
DeBoer pulled in nearly $20 million in combined salary, stock and incentive compensation — a 73 percent jump from the previous year, as the auto retail giant's board looked to reward "value creation" under his leadership. Lithia nearly doubled his stock awards.
DeBoer's closest competitor, AutoNation Inc. CEO Mike Manley, earned nearly $13.6 million. The base salary of each was $1.3 million, unchanged from 2022.
The CEOs from other public auto retailers — Asbury Automotive Inc., Penske Automotive Group Inc., Sonic Automotive Inc. and Group 1 Automotive Inc. — followed a similar pattern: that is, a relatively modest base salary and much more lucrative forms of alternative compensation.
Still, the salaries are relatively modest compared with CEOs at other public companies in different industries, said James Reda, national managing director and executive compensation practice leader at Gallagher, an insurance and industry consulting firm.
"Auto company salaries are pretty unexciting because that's not where the compensation really comes from. [Salary] increases were nominal," Reda said. "Typically where the compensation comes from is the cash bonus, and more specifically, the long-term incentive awards."
Here is the total compensation of each CEO at the top six public dealership groups taken from each of the companies' proxy regulatory filings for 2023.
Lithia
DeBoer's pay included $15.3 million in stock awards, based on the aggregate fair value on the grant date; $2.7 million in other incentive compensation; and $7,258 in benefits spanning a $2,500 401(k) match and $4,758 in disability, life and long-term care insurance.
The increase in DeBoer's compensation stemmed primarily from increases in his stock and other incentive pay. DeBoer in 2022 received a $1.3 million salary, $7.8 million in stock, $2 million in incentive pay and $6,932 in other compensation.
Lithia said it bumped DeBoer's pay based in part on his "leading performance and industry stature"...