Daniel C. Ustian was the chairman of Navistar, Inc. beginning in 2004, president and chief executive officer beginning in 2003, and a director beginning in 2002 until his release in 2012. Before serving in these positions, he was president and chief operating officer from 2002 to 2003 and president of the Engine Group of Navistar, Inc. from 1999 to 2002. He also held the position of group vice president and general manager of Engine & Foundry from 1993 to 1999. An alum of DePaul University, he was a director of Monaco Coach Corporation and a member of the Business Roundtable, Society of Automotive Engineers and the American Foundry Society.
Compensation
editWhile CEO of Navistar International in 2008, Daniel Ustian earned a total compensation of $6,642,747, which included a base salary of $1,170,833, a cash bonus of $2,589,500, stocks granted of $2,775,216, and no options.[1]
Retirement
editDaniel Ustian abruptly retired as president, executive chairman, and CEO of Navistar International on August 27, 2012. Lewis B. Campbell immediately stepped in to replace him as chairman and interim CEO.[2] Ustian is largely blamed for convincing the company to spend hundreds of millions of dollars on the unproven and noncompliant exhaust gas recirculation (EGR) technology. EGR did not receive EPA certification, which led to governmental fines, high warranty costs, widespread retrofits, brand damage and loss of marketshare. [3] Since Ustian's departure, the company has struggled to return to profitability. Navistar has also undergone two rounds of lay-offs -- one in August/September 2012 and another in August/September 2013. [4]
On March 31, 2016, the Securities and Exchange Commission filed suit against Ustian in the U.S. District Court for Northern Illinois, citing a "campaign of deception" regarding the company's ultimately unsuccessful 2010 emissions compliance strategy. [5][6] As of August 2018, the SEC suit against Ustian continued to move forward. [7]
References
edit- ^ 2008 CEO Compensation for Daniel C. Ustian[permanent dead link], Equilar.com
- ^ "Navistar CEO Ustian Retiring Immediately". Chicago Tribune. August 27, 2012. Retrieved September 6, 2012.
- ^ Muller, Joann. "Death by Hubris? The Catastrophic Decision That Could Bankrupt a Great American Manufacturer". Forbes.
- ^ "Navistar to cut hundreds of jobs by September". Chicago Tribune. August 9, 2013.
- ^ "Securities and Exchange Commission v. Daniel Ustian, Civil Action No. 16-cv-3885 (U.S. District Court for the Northern District of Illinois)". U.S. Securities and Exchange Commission. March 31, 2016. Retrieved 23 July 2019.
- ^ Micah Maidenberg (March 31, 2016). "SEC: Former Navistar CEO covered up failed engine technology". Crain's Chicago Business. Crain Communications, Inc. Retrieved 23 July 2019.
- ^ "United States Securities and Exchange Commission v. Ustian". Law 360. Portfolio Media, Inc. August 7, 2018. Retrieved 23 July 2019.