"At its January 2025 board meeting, the compensation committee of RTX pre-authorized the removal of tariff impacts on business metrics related to Calio's pay months before President Trump announced a set of sweeping Liberation Day tariffs on April 2, 2025."
"Calio's annual bonus hit $5.1 million, an 85% increase over the $2.76 million the company paid him the year before. How much of that growth was attributable to the tariff exclusion, RTX did not disclose."
"At Ross Stores, the compensation committee approved a similar adjustment on May 21, 2025, stripping tariff costs from calculations used to determine bonuses and long-term incentive payouts."
"An analysis released by Compensation Advisory Partners found that among 22 large public companies with significant tariff exposure, eight boards shielded executive pay from the tariff tumult."
Christopher Calio, CEO of RTX, received $27.7 million in compensation, including an annual bonus of $5.1 million, which was influenced by the exclusion of tariff impacts. The RTX compensation committee pre-authorized this exclusion before tariffs were announced. Similar adjustments were made at Ross Stores and The Gap, allowing their CEOs to receive substantial compensation without tariff-related deductions. An analysis revealed that eight out of 22 large public companies with significant tariff exposure shielded executive pay from tariff impacts, although specific values of these adjustments were not disclosed.
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