During lockout, RTI execs got raises, documents show

A union leader called the raises 'morally wrong' in light of the RMI lockout.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
WEATHERSFIELD -- The parent company of RMI Titanium, where workers have been locked out since October over financial issues, awarded pay raises and hefty bonuses to its top executives last year.
Documents RTI International Metals filed with the Securities and Exchange Commission show Timothy Rupert, president and chief executive, got a $15,000 raise last year, a $300,000 bonus and a stock award for what RTI's board of directors called "an outstanding performance."
The CEO's 2003 compensation package was a reduction from 2002, however, totaling $951,720, according to SEC filings. Other top executives saw comparable raises and bonuses, though some of their compensation totals were also less than the previous year.
A union leader representing the locked-out RMI workers called the executive pay raises and bonuses "morally wrong" in light of the lockout.
Union leader's comment
Todd Weddell, president of Locals 2155 and 2155-7 of the United Steelworkers of America, said the decision to grant raises and bonuses for management employees is "evidence" the company is targeting the union. He said the company has demanded union workers agree to $3.5 million in concessions but has refused to allow union leaders to review its books to verify that RMI is losing money.
"If the company needs savings, why start with the union? My suggestion has always been that the company lead by example, and this is evidence that the company is not leading by example," he said.
RTI's filing with the regulatory agency says the board of directors rewarded Rupert and other top executives for producing a "very strong" shareholder return, "a modest profit and strong cash flow" in 2003. RTI is a large company with several plants, distribution centers and sale offices across the United States and in Europe, and the board's evaluation was based on the company's overall performance.
The management team achieved what the board considered an "exceptional performance in the context of a dismal economic environment," the company stated. It also mentioned what the company called a "work stoppage" at RMI as one of the difficulties managers encountered.
SEC filings say members of the board's nominating and corporate governance committee also approved increases in board members' compensation.
Retainers given
Employees who serve on the board receive no extra pay for serving as directors, but nonemployee directors are getting a $60,000 retainer effective Jan. 1, an increase from $35,000 last year. Half the retainer is paid in cash and half in company stock.
Board chairman Robert M. Hernandez is paid $110,000, an increase from $80,000 in 2003. He also gets half his retainer in cash and half in stock.
Board members and executives are compensated partly with stock, explained RTI spokesman Richard Leone, as an added incentive for them to work toward the continued growth and success of the company.
RTI has scheduled its annual meeting for 2 p.m. April 30 at the Holiday Inn on South Avenue, Boardman. The meeting was held locally last year but held its annual meeting in New York City in 2001 and in Houston, Texas, in 2002.
Weddell said most RMI hourly employees are stockholders in RTI because they were given some shares of stock in 1993 and can buy shares through a 401(k) savings plans. Weddell said he expects to see a strong contingent of union employees at the annual meeting.
vinarsky@vindy.com