W. Nicholas Howley, CEO of TransDigm Group Incorporated, stands out for his unique approach to executive compensation. He emphasizes performance and equity, favoring stock options over a high base salary. His annual salary is surprisingly low at just $7,000, while...
W. Nicholas Howley, CEO of TransDigm Group Incorporated, stands out for his unique approach to executive compensation. He emphasizes performance and equity, favoring stock options over a high base salary. His annual salary is surprisingly low at just $7,000, while his total compensation can reach astonishing amounts. For instance, in 2018, he earned over $25 million, mainly from executing stock options tied to company performance. This structure aligns his goals with shareholders, aiming for long-term growth and value creation. Notably, he has been with TransDigm since 2003 and transitioned to the CEO role in 2009, leading the firm through significant expansions in the aerospace parts market. Beyond money, Howley utilizes company aircraft for personal use, a common perk for top executives. His strategic focus on aligning management rewards with company success makes him a pivotal figure in ensuring that everyone benefits when the company thrives.