Goodyear chief executive gets 2009 compensation valued at $14 million, up 40 percent from 2008

Goodyear CEO gets compensation worth $14 million

NEW YORK — The chairman and outgoing chief executive of Goodyear Tire & Rubber Co. received a pay package valued at $14 million in 2009, a 40 percent increase from the year before, according to an Associated Press analysis of a regulatory filing.

Robert Keegan’s raise came mostly in his performance-linked bonus, which was more than double what he received in 2008. Goodyear’s stock price also more than doubled in 2009, a year in which its sales slumped and it reduced its work force as demand for new tires fell in the struggling economy.

The filing with the Securities and Exchange Commission on Monday showed Keegan, 62, received a base salary of about $1.2 million, little changed from the year before, and a performance-based bonus of $9.5 million, up from $4.6 million in 2008.

He also received stock awards and options valued at $3.1 million on the date they were granted.

Other compensation, including personal use of a company aircraft and premiums on life insurance policies, totaled $132,427.

In 2008, Keegan received compensation valued at $10 million.

The AP’s total pay calculations include executives’ salary, bonus, incentives, perks and the estimated value of stock options and awards granted during the year.

The calculations don’t include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.

In 2009, Goodyear lost $375 million, or $1.55 per share, compared with a 2008 loss of $77 million, or 32 cents per share, a year ago. Sales fell 16 percent to $16.3 billion.

Goodyear reduced its work force by about 5,700 in 2009 to about 70,000. The company wants to reduce production by 15 million to 25 million units over the next two years.

The tire maker has nearly 70,000 employees and has production facilities in 24 countries.

Last month, Goodyear, based in Akron, Ohio, said COO Richard Kramer would succeed Keegan, who will remain executive chairman, effective following the April 13 annual meeting. Keegan has been CEO since 2003.

The company’s stock began 2009 at $5.97 and ended the year at $14.10.