U.S. Steel president and CEO David Burritt did not receive a short-term cash incentive award last year, apparently because the board believed he failed to do enough to create a fair workplace.
The Pittsburgh steelmaker’s proxy statement discloses that Mr. Burritt was not awarded the incentive, citing his “personal responsibility for and commitment to creating a workplace climate meeting the highest standards of accountability, fairness and respect.”
Mr. Burritt, who received compensation valued at $4.7 million last year, was only one of two top-paid executives at the company not to be paid the short-term bonus. The other, former general counsel Suzanne Rich Folsom, was not entitled to one based on her separation agreement with U.S. Steel.
Former president and CEO Mario Longhi, who announced his retirement in May shortly after the company reported a stunning $180 million first quarter loss, was awarded a short-term cash incentive of $1 million.
The awards are based on sales, cash flow, and adjusted earnings. The final award may be increased up to 30 percent — or decreased or eliminated — based on an executive’s performance, according to the proxy statement.
U.S. Steel declined to provide additional information on the board’s reason for withholding the short-term bonus.
In a statement, the company said Mr. Burritt “returned the corporation to profitability and the best balance sheet in recent years.”
Not receiving the bonus reflects Mr. Burritt’s “sense of personal responsibility for further improvements in the corporation’s culture and his commitment to a workplace climate which balances the highest standards of accountability with fairness and respect,” the statement said.
At a shareholder meeting Tuesday at U.S. Steel Tower, Mr. Burritt expressed pride in “Pivot to the People,” a workplace culture initiative he launched after succeeding Mr. Longhi last year.
After citing the financial accomplishments that sparked the troubled company’s turnaround, Mr. Burritt told the sparse crowd, “One of the things we’re most proud of in the past year is Pivot to the People,” adding “We’ve got to do more. There’s much more to do.”
His remarks mirrored comments in the proxy statement sent to shareholders in advance of the meeting.
“The Board and Mr. Burritt determined that further improvement in the corporation’s culture is needed to ensure the exceptional operation and financial progress made in 2017 endures,” the proxy states.
Shareholders approved the election of directors, an auditor and U.S. Steel’s compensation plan.
Len Boselovic: lboselovic@post-gazette.com or 412-263-1941.
First Published: April 25, 2018, 12:45 p.m.