American Axle CEO's reward for slashing wages--$8.5 million bonus

In addition to the bonus Dauch received $1.5 million salary, stock awards and other compensation, which brought his total to $18.7 million in 2007, more than double his compensation in 2006. Dauch, one of the highest paid auto industry executives, has pocketed over $300 million since leading a group of private investors who took over several auto parts factories from General Motors in 1994.

Auto workers in Michigan and New York went on strike last February to oppose wage cuts of up to 50 percent. The bitter 87-day walkout was isolated and betrayed by the United Auto Workers bureaucracy, which had agreed to substantial rollbacks even before the strike began.

The new contract cut wages from $28 an hour to $14.50 and to as low as $10 an hour at the companys Three Rivers, Michigan plant. In addition, the company is closing two plants and eliminating 2,000 of 3,650 jobs, including 1,100 in Detroit.

In its SEC filing, the company noted that its board of directors had delayed its decision on bonuses pending the outcome of the strike. It boasted that the new agreement had achieved numerous changes that will structurally and permanently reduce AAMs U.S. labor cost structure, improve AAMs operating flexibility and increase capacity utilization.

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