Sonic CEO Smith's total pay jumps about 60%
Most of gain in 2008 came from nearly $2.4 million in exercised stock options, company reports.
Friday, Apr. 10, 2009
As chairman and chief executive of Sonic Automotive, Bruton Smith received more than $4.2 million in compensation last year, a nearly 60 percent increase over 2007.
Most of that gain, however, was from nearly $2.4 million in exercised stock options, according to a company filing Thursday with federal regulators. Without that, Smith received about $1.8 million – about 30 percent less than in 2007, when he got a much bigger bonus but didn't exercise any options. The Observer counts salary, bonuses, stock awards, gains from exercised options and perks as total pay.
A Charlotte-based Fortune 500 company, Sonic is one of the nation's largest auto dealers, with 164 franchises in 15 states. The company and its competitors have been battered in the recession, which has severely curbed vehicle purchases.
Sonic last week reported a fourth-quarter loss of $685.6 million, compared with a $23 million profit a year earlier. Executives said the loss wasn't in operations but in assets that now have a much lower value than what Sonic paid.
Still, the company said in its annual report that it may have to seek bankruptcy protection if it can't restructure debt. Sonic has roughly $1.5 billion in debt scheduled to mature this year and next, including $105.3 million due May 7.
Shares in the company began 2008 above $18 and topped $21 in April before finishing the year below $4, down about 80 percent. The stock closed Thursday at $2.05.
At $1.1 million, Smith's 2008 salary was the same as the previous two years. He saw a 12 percent bump in stock awards to $315,326 but 70 percent drop in bonus to $330,000.
Scott Smith – Sonic's president and chief strategic officer, and Bruton Smith's son – received almost $2.1 million in 2008, down about 5 percent from the previous year.
His salary remained $950,000, while stock awards increased by 12 percent to $252,261. His bonus fell about 70 percent to $285,000, and he gained $566,905 from exercising stock options.
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