CEOs got millions after boards ‘neutralized’ the impact of tariffs. Some won’t say what it was worth
Several major U.S. companies, including RTX, Ross Stores, and The Gap, adjusted their executive compensation plans to neutralize the financial impact of 2025 tariffs on performance metrics, resulting in multimillion-dollar payouts to CEOs. While some firms disclosed the extent of these adjustments, others did not reveal how much the changes boosted executive pay. An analysis by Compensation Advisory Partners found that eight of 22 tariff-exposed companies shielded executive incentives from tariff-related costs, with varying levels of transparency.
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Christopher Calio, CEO of RTX, collected $27.7 million in compensation last year. That was his total after the $241.5 billion aerospace and defense giant’s board decided the trade war wouldn’t touch his bonus. Recommended Video At its January 2025 board meeting, the compensation committee of RTX, formerly Raytheon, 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 that upended global supply chains.
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