CEOs got millions after boards ‘neutralized’ the impact of tariffs. Some won’t say what it was worth
Several major U.S. companies adjusted executive compensation plans to shield CEO pay from the financial impact of 2025 tariffs, despite not disclosing the exact value of those adjustments. Firms like RTX, Ross Stores, and The Gap excluded tariff-related costs from performance metrics used to calculate bonuses. An analysis found that while some companies disclosed the financial impact of these adjustments, others did not, raising questions about transparency in executive pay practices.
- ▪RTX's CEO Christopher Calio received $27.7 million in compensation after the board excluded tariff impacts from his bonus calculations.
- ▪The Gap and Ross Stores also adjusted performance metrics to neutralize tariff effects, with CEOs receiving $17.2 million and $17.4 million, respectively.
- ▪Eight of 22 large companies with significant tariff exposure adjusted executive pay plans to minimize the impact, but four of them did not disclose how much the adjustments increased payouts.
- ▪Yeti Holdings added back $38 million in tariff costs to boost operating income, increasing annual bonuses by 42.6% and ensuring executives met incentive thresholds.
- ▪Ford, PepsiCo, and Pfizer acknowledged tariff impacts but did not adjust their incentive plans, allowing the costs to affect executive compensation calculations.
Opening excerpt (first ~120 words) tap to expand
Christopher Calio, CEO of RTX, collected $27.7 million in compensation last year. That was his total after the $241.5 billion aerospace and defense giant’s board decided the trade war wouldn’t touch his bonus. Recommended Video At its January 2025 board meeting, the compensation committee of RTX, formerly Raytheon, pre-authorized the removal of tariff impacts on business metrics related to Calio’s pay months before President Trump announced a set of sweeping Liberation Day tariffs on April 2, 2025 that upended global supply chains.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at Fortune.
Discussion
0 commentsMore from Fortune
