Wednesday, July 1, 2015

Constar pays up to attract its new CEO

The Philadelphia plastic-container maker hired Grant Beard, the former head of TriMas, and will pay him a salary that's $250,000 more than Constar's former CEO.

Constar pays up to attract its new CEO

0 comments

It took only 20 weeks for Constar International Inc. to find a new chief executive officer after Michael J. Hoffman resigned April 28.

But the Philadelphia plastic-container manufacturer had to pay up to pry Grant H. Beard away from a Michigan private-equity firm.

Beard, 49, will get a base salary of $750,000, according to a filing with the Securities and Exchange Commission. That’s more than the $497,950 his predecessor had gotten.

Beard also will receive annual equity compensation totaling $1.25 million, starting in 2011, and will be eligible for an annual bonus of up to 100 percent of his salary. Unlike some recently hired CEOs, Beard will not get a signing bonus. But he will be paid a guaranteed bonus of $250,000 at the end of this year.

Constar chairman L. White Matthews III said in a statement that Beard was “an ideal fit” to lead the company.

One reason is that before joining that private-equity firm in February 2009, Beard had spent nearly eight years as president and CEO of TriMas Corp., a Michigan diversified manufacturer that is involved in the packaging sector. TriMas is bigger than Constar, with sales of $803.65 million in 2009.

Constar - spun off by another Philadelphia company, Crown Holdings Inc., in 2002 - has struggled financially. It emerged from Chapter 11 bankruptcy at the end of May 2009 and lost $21.1 million, or $12.06 a share, on net sales of $421.19 million for the eight months ended Dec. 31.

Sometimes, word of the hiring of a CEO can move the stock price. Not this time. Constar shares closed unchanged Wednesday at $2.10. The company has lost 87 percent of its market value over last 52 weeks.

But then, leadership transitions can be costly. Constar is obligated to pay former CEO Hoffman a lump sum of $2.2 million in November as part of his employment agreement.

Plus, it paid $250,000 to Constar board member Ruth J. Mack for her work as interim president and CEO from April 28 to Sept. 13.

List of liens

When the Pennsylvania Department of Revenue expanded its online list of tax liens in August, the agency said it hoped that publicly embarrassing individuals and businesses would spur them to settle and pay up.

It has prompted some to do so. On Wednesday, Revenue Department officials said 646 liens totaling $4.4 million had been satisfied, and they were removed from the list, which is available for viewing 24/7 on the agency’s website. (Read it here.)

However, the “In box” for unpaid taxes only grew larger. In the month since the state last reported delinquencies, the agency added 2,951 new liens covering $22.9 million.

That brings the current tally to 41,629 liens totaling $251.46 million.

Taxing problem

Several readers responded to Tuesday’s column on simplifying the tax system and making it more fair.

All were skeptical that Congress could or would do so. Here’s one reaction:

“The trick, it seems to me, is getting everyone to agree on which route to take,” wrote Andrew Terhune, of Center City, in an e-mail.

“The problem is that it’s difficult to give up any revenue with trillion-dollar deficits as far as the eye can see, even though in the long run simplification might produce more growth and ultimately more revenue.”
 

Inquirer Columnist
0 comments
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
 
comments powered by Disqus
About this blog
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980. Reach Mike at marmstrong@phillynews.com.

Mike Armstrong Inquirer Columnist
Also on Philly.com:
letter icon Newsletter