New Dana chief to be paid $1 million plus bonus

2/7/2008

Devine

Handout not Blade photo

The new chairman and acting chief executive officer of Dana Corp. will be paid $1 million a year in salary, have a bonus of up to 150 percent of his salary, and receive other benefits, including housing expenses and use of a corporate aircraft.

The Toledo auto parts supplier disclosed the compensation yesterday for John Devine, a former chief financial officer at General Motors Corp. and Ford Motor Co.

Mr. Devine, named to lead the firm Friday when it emerged from Chapter 11 bankruptcy protection, has the right buy up 800,000 shares of common stock in the firm at a set price, will have life and disability insurance, and will receive an undisclosed severance package, according to a Dana filing with the U.S. Securities and Exchange Commission.

His contract is for one year, although the company has not indicated when or how it plans to pursue a permanent CEO. Mr. Devine, 63, replaced Mike Burns, who had $2.3 million in compensation in 2006.

It was not clear what Mr. Burns made in 2007, although he was entitled to $6.75 million in bonuses from leading the Dorr Street company through bankruptcy.

Also yesterday, Dana named Robert Marcin, a retired human resources executive with Visteon Corp. and a former Ford executive, to be chief administrative officer.

He will be responsible for human resources, corporate communications, and government relations.

His pay will be $500,000 plus a $250,000 signing bonus, life and disability insurance, and eligibility to participate in annual bonuses and long-term incentive programs, the SEC filing said.