Magna International Inc. (TSX:MG.A) chairman Frank Stronach took a big pay cut last year, earning only $1.9 million compared to $10.8 million in 2008.
The 82 per cent difference in salary was mainly due to consulting fees Stronach usually receives from the auto parts giant's subsidiaries. Because these fees are based on Magna's pre-tax profits, and the company reported a loss in 2009, Stronach didn't receive any consulting income last year.
By comparison, he was paid $8.2 million for his consulting services in 2008 and a hefty $37.8 million in 2007. Stronach's total salary in 2007 was $40.5 million, 95 per cent higher than last year.
However, Stronach's 2009 income was given a boost by a one-time bonus payment of $2 million from Magna spinoff MI Developments Inc. (TSX:MIM.A) "on the basis of his extensive services rendered to and on behalf of the company over the past several years."
Stronach is chairman of the real estate operating company.
Magna lost US$493 million in 2009 compared to profits of $71 million in 2008 and $663 million in 2007. Auto suppliers around the world took a beating last year as the industry struggled through the global recession by slashing production and closing plants.
Shares in Magna gained 66 cents to $63.51 in afternoon trading on the Toronto Stock Exchange.
