PACCAR Inc., a global leader in the design and manufacturing of premium trucks under brands like Kenworth, Peterbilt, and DAF, is a powerhouse in the commercial vehicle industry. At the helm of this Fortune 500 company is R. Preston Feight, who has been serving as PACCAR’s CEO since July 2019. With over 26 years of experience in the company and a deep understanding of the global trucking industry, Feight’s leadership has significantly contributed to PACCAR’s growth and innovation.
In this blog, we’ll dive into the details of R. Preston Feight’s salary, bonuses, stock awards, and overall net worth. We’ll also explore how his compensation compares to other executives in the industry, analyze PACCAR’s financial performance, and provide insights into the broader implications of executive pay.
About PACCAR Inc.
PACCAR is a globally recognized leader in the trucking and transportation industry. The company specializes in the design, manufacture, and customer support of light, medium, and heavy-duty trucks under its iconic brands: Kenworth, Peterbilt, and DAF.
PACCAR is also a pioneer in technological advancements in the trucking industry, including electric vehicles (EVs), autonomous driving systems, and sustainability initiatives. With a strong global presence and consistent profitability, PACCAR continues to be a top player in the commercial vehicle market.
Who is R. Preston Feight?
- Preston Feight is an accomplished leader with over two decades of experience at PACCAR. He became the company’s CEO in July 2019, succeeding Ronald Armstrong. Feight’s leadership has been instrumental in driving PACCAR’s innovation, sustainability efforts, and market expansion.
Educational Background
- Bachelor’s Degree: B.S. in Mechanical Engineering from Northern Arizona University.
- Master’s Degree: M.S. in Engineering Management from the University of Colorado.
Career Journey at PACCAR
- Chief Executive Officer (2019–Present): Leads PACCAR’s global operations, focusing on innovation and profitability.
- Executive Vice President (2018–2019): Oversaw critical strategic initiatives.
- President of DAF Trucks (2016–2018): Managed PACCAR’s European brand, DAF, achieving significant growth in the region.
- General Manager of Kenworth Truck Company (2015–2016): Led Kenworth’s operations and product development.
- Chief Engineer at Kenworth (2008–2012): Played a key role in advancing truck technology and engineering.
Prior Experience
Before joining PACCAR, Feight worked as an engineer at Ford Motor Company for six years and at AlliedSignal Inc. for two years. His extensive engineering background has been a cornerstone of his leadership style.
PACCAR CEO Salary Breakdown
- Preston Feight’s compensation package reflects his leadership role and PACCAR’s strong financial performance. Here’s a detailed look at his earnings for 2023:
1. Total Compensation
- Total Compensation (2023): $15,658,665
- Base Salary: $1,646,154
- Cash Bonuses and Incentives: $5,031,731
- Equity Awards (Stock Options): $6,630,716
- Other Benefits: $22,114
This represents a significant increase from his 2022 total compensation of $10,941,047, reflecting PACCAR’s strong performance and Feight’s contributions to the company’s success.
2. Base Salary
Feight’s base salary for 2023 was $1,646,154, providing a stable annual income. This forms a smaller portion of his total compensation, with the majority tied to performance-based incentives and stock awards.
3. Performance-Based Bonuses
The cash bonuses and incentives amounted to $5,031,731 in 2023. These bonuses are directly tied to PACCAR’s financial performance, including revenue growth, profitability, and shareholder returns.
4. Stock Awards
Feight received $6,630,716 in equity awards, making up the largest portion of his compensation. These stock options align his interests with those of PACCAR’s shareholders, ensuring a focus on long-term value creation.
5. Other Benefits
Other benefits, including retirement contributions, healthcare, and perks, totaled $22,114 in 2023. While this is a small portion of his overall compensation, it reflects PACCAR’s commitment to supporting its executives.
R. Preston Feight’s Net Worth
As of 2023, R. Preston Feight’s estimated net worth is between $50 million and $60 million. This includes his earnings from salary, bonuses, and stock awards, as well as his ownership of PACCAR shares.
Key Factors Contributing to His Net Worth
Stock Holdings:
- Feight owns 0.05% of PACCAR’s shares, valued at millions of dollars. The exact value fluctuates based on PACCAR’s stock performance.
Career Earnings:
- With over 26 years at PACCAR and several high-ranking positions, Feight has accumulated significant wealth throughout his career.
Leadership Bonuses:
- His performance-based bonuses and equity awards have consistently boosted his overall earnings.
CEO Pay vs Other Executives at PACCAR
- Preston Feight’s total compensation of $15.6 million in 2023 makes him the highest-paid executive at PACCAR. Here’s how his pay compares to other top executives at the company:
- Gary L. Moore (Highest Paid Executive after Feight): $2,247,188
- Robert Bengston: $1,686,397
- Mark C. Pigott (Executive Chairman): $6.8 million
The average executive compensation at PACCAR is approximately $235,320 per year, highlighting the significant gap between the CEO and other executives.
Comparison to Other CEOs in the Industry
Feight’s salary is competitive when compared to other CEOs in the trucking and transportation industries. Here’s how he stacks up:
- PACCAR CEO (R. Preston Feight): $15.6 million (2023)
- Caterpillar CEO (Jim Umpleby): $23.7 million (2023)
- Cummins CEO (Jennifer Rumsey): $21.86 million (2023)
While Feight’s compensation is slightly lower than some peers, it reflects PACCAR’s consistent profitability and strong market position.
PACCAR’s Financial Performance and CEO Pay
PACCAR’s financial success is a key driver of R. Preston Feight’s compensation. In 2023, the company reported strong revenue and profitability, driven by its focus on innovation, sustainability, and global expansion.
Key Financial Highlights
- Revenue Growth: PACCAR’s revenue has steadily increased, supported by strong demand for its trucks and parts.
- Electric Vehicles and Sustainability: Under Feight’s leadership, PACCAR has made significant investments in electric and autonomous vehicles, positioning itself as a leader in green technology.
- Global Expansion: PACCAR continues to expand its presence in international markets, further boosting its financial performance.
Feight’s performance-based pay ensures that his compensation reflects PACCAR’s overall success.
Public Perception of CEO Compensation
Executive pay often sparks debate, particularly when there’s a significant gap between CEO and employee earnings. Here are some perspectives on R. Preston Feight’s compensation:
Supporters’ Viewpoint
- Feight’s pay is tied to PACCAR’s financial performance, aligning his interests with those of shareholders.
- His leadership has driven innovation and sustainability, ensuring PACCAR’s long-term success.
Critics’ Viewpoint
- The CEO-to-median pay ratio highlights income inequality within the company.
- Some argue that executive pay should be more closely tied to employee wages.
PACCAR emphasizes transparency in its executive compensation policies, highlighting the performance-based nature of Feight’s pay.
Future Outlook for PACCAR CEO Compensation
As PACCAR continues to innovate and expand, R. Preston Feight’s compensation is likely to grow. Key factors influencing his future earnings include:
- Sustainability Goals: PACCAR’s focus on electric and autonomous vehicles will drive long-term growth.
- Global Market Expansion: Expanding into new regions will create additional revenue streams.
- Technological Advancements: Continued investment in green technology will strengthen PACCAR’s market position.
Feight’s leadership will play a critical role in achieving these goals, ensuring that his compensation reflects the company’s success.
Conclusion
- Preston Feight’s salary and net worth highlight his significant contributions to PACCAR Inc. With a total compensation of $15.6 million in 2023 and an estimated net worth of $50–60 million, his earnings reflect his leadership, innovation, and commitment to sustainability.
While executive pay often sparks debate, it underscores the responsibilities and impact of leadership roles in global corporations. For those interested in CEO salaries, Feight’s journey offers valuable insights into the rewards and challenges of leading a multinational company like PACCAR.