Greg Smith
About Greg Smith
Greg Smith, age 73, has served on Penske Automotive Group’s Board since 2017 and is currently the independent Chair of the Audit Committee and designated financial expert. He is Principal of Greg C. Smith LLC and the retired Vice Chairman of Ford Motor Company, with 30+ years in automotive leadership; he is also Non‑Executive Chairman of Lear Corporation’s board. The PAG Board has determined he is independent under NYSE rules; directors collectively attended 98% of meetings in 2024, and each director attended at least 88% .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Ford Motor Company | Vice Chairman; EVP & President – Americas; Chairman & CEO – Ford Motor Credit; President & COO – Ford Motor Credit | Vice Chairman 2005–2006; other executive roles 2001–2005 | Led Corporate Strategy, HR/Labor, IT, Automotive Strategy; ran major business units in financial services, engineering, product development |
| Greg C. Smith LLC | Principal | 2007–present | Private management consulting; governance advisory experience |
| Penske Automotive Group (PAG) | Director; Audit Committee Chair; Financial Expert | Director since 2017 | Chairs Audit Committee; oversees auditor independence, internal controls, financial reporting; recommended inclusion of audited financials in 2024 Form 10‑K |
| National Association of Corporate Directors | Risk Oversight Advisory Council Member; NACD Board Leadership Fellow | n/a | Governance and risk oversight expertise |
External Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Lear Corporation | Non‑Executive Chairman; Director | Director since 2009; Non‑Exec Chair since May 2020 | Ex officio member of Audit, Governance & Sustainability, and People & Compensation Committees; board leadership separate from CEO |
Board Governance
- Committee assignments (2024): Audit Committee Chair and financial expert; not a member of Compensation or Nominating committees .
- Meeting cadence (2024): Board 7; Audit 8; Compensation 5; Nominating 2; Executive 0 .
- Independence: Board determined Smith and all members of Audit, Compensation, and Nominating committees are independent under NYSE rules .
- Audit Committee oversight: Sole authority to retain/terminate auditors; reviewed auditor independence and recommended inclusion of audited financial statements in 2024 10‑K filed Feb 21, 2025 .
Fixed Compensation
| Component | 2023 | 2024 |
|---|---|---|
| Fees Earned or Paid in Cash ($) | $105,000 | $105,000 |
| Stock Awards ($) | $250,000 | $250,000 |
| All Other Compensation ($) | $50,000 | $50,000 |
| Total ($) | $405,000 | $405,000 |
- Other compensation detail: Charitable match ($50,000) and election of $20,000 in lieu of a company vehicle; DSUs outstanding at 12/31/24: 20,696 .
- Director fee schedule (2024): Non‑employee directors $60,000; Audit Committee members $65,000; Audit Committee Chair additional $20,000; Lead Director +$30,000; Committee Chairs (Comp and Nominating) +$15,000; annual equity grant $250,000 in December (stock or deferred stock) .
Performance Compensation
| Element | Structure | Metrics | Vesting |
|---|---|---|---|
| Annual Director Equity | $250,000 of shares or deferred stock units (DSUs) granted in December; valued on grant date | None disclosed for director grants | Not explicitly specified for directors; DSUs accrue dividend equivalents; payable upon board service termination per deferral elections |
- Stock ownership guidelines: Non‑employee directors must own common stock equal to 10x annual retainer ($600,000 based on $60,000 retainer); five years to comply; pledged shares excluded; restricted stock included .
Other Directorships & Interlocks
| Company | Role | Notes |
|---|---|---|
| Lear Corporation | Non‑Executive Chairman | Current board leadership; ex officio across core committees |
| Prior public boards | Fannie Mae; Solutia Inc.; Penske Corporation | Historical board service indicating deep governance experience |
Expertise & Qualifications
- Technical/industry: Extensive automotive operations, finance, strategy; former Vice Chairman at Ford; leadership across financial services (Ford Credit), engineering, product development .
- Governance: Audit committee leadership experience; NACD Risk Oversight Advisory Council and NACD Board Leadership Fellow .
- Education: BS Mechanical Engineering (Rose‑Hulman Institute of Technology); MBA (Eastern Michigan University) .
Equity Ownership
| Measure (as of Mar 20, 2025) | Shares | Percent |
|---|---|---|
| Economic Ownership | 22,376 | <1% |
| Beneficial Ownership (SEC definition) | 1,529 | <1% |
| DSUs outstanding (12/31/24) | 20,696 | n/a |
- Ownership table notes: Percent based on 66,747,196 shares outstanding; unless noted, shares are not pledged .
- Hedging/pledging policy: Directors prohibited from hedging; pledged shares excluded from ownership guideline calculations .
Insider Trades (Form 4, 2023–2025)
| Filing Date | Transaction Date | Type | Security | Quantity | Price | Post‑Txn Ownership | SEC Link |
|---|---|---|---|---|---|---|---|
| 2025‑09‑05 | 2025‑09‑03 | Award | DSUs (Phantom) | 151 | $0.00 | 21,159 | |
| 2025‑06‑04 | 2025‑06‑03 | Award | DSUs (Phantom) | 161 | $0.00 | 21,008 | |
| 2025‑06‑04 | 2025‑06‑03 | Sale | Common Stock | 1,529 | $161.64 | 0 | |
| 2025‑03‑10 | 2025‑03‑06 | Award | DSUs (Phantom) | 151 | $0.00 | 20,847 | |
| 2024‑12‑13 | 2024‑12‑11 | Award | Common Stock | 1,529 | $0.00 | 1,529 | |
| 2024‑12‑05 | 2024‑12‑03 | Award | DSUs (Phantom) | 147 | $0.00 | 20,696 | |
| 2024‑09‑06 | 2024‑09‑04 | Award | DSUs (Phantom) | 135 | $0.00 | 20,549 | |
| 2024‑06‑05 | 2024‑06‑04 | Award | DSUs (Phantom) | 129 | $0.00 | 20,415 | |
| 2024‑03‑05 | 2024‑03‑01 | Award | DSUs (Phantom) | 113 | $0.00 | 20,286 | |
| 2024‑02‑20 | 2024‑02‑16 | Sale | Common Stock | 1,604 | $149.377 | 0 | |
| 2023‑12‑15 | 2023‑12‑13 | Award | Common Stock | 1,604 | $0.00 | 1,604 | |
| 2023‑12‑05 | 2023‑12‑01 | Award | DSUs (Phantom) | 103 | $0.00 | 20,173 | |
| 2023‑09‑05 | 2023‑09‑01 | Award | DSUs (Phantom) | 87 | $0.00 | 20,070 | |
| 2023‑06‑05 | 2023‑06‑01 | Award | DSUs (Phantom) | 95 | $0.00 | 19,983 | |
| 2023‑03‑03 | 2023‑03‑01 | Award | DSUs (Phantom) | 83 | $0.00 | 19,888 | |
| 2023‑02‑22 | 2023‑02‑21 | Sale | Common Stock | 2,029 | $151.00 | 0 |
Pattern: Quarterly DSU accruals and annual director stock grants; periodic open‑market sales of common shares. Post‑transaction positions reflected in Form 4 filings [Readout from insider‑trades skill].
Governance Assessment
- Strengths: Independent Audit Chair with deep automotive and finance experience; rigorous auditor independence oversight; board meets robust cadence; committee independence confirmed; high say‑on‑pay support (98% in prior year) suggests shareholder confidence in compensation governance .
- Alignment: Director equity of $250,000 annually with optional deferral into DSUs; stock ownership guidelines require material personal holdings (10x retainer, $600,000) with five‑year compliance window .
- Independence and engagement: Audit Committee comprised of four “audit committee financial experts”; directors collectively attended 98% of meetings in 2024 (each ≥88%) .
- Related‑party context: PAG is a “controlled company” under NYSE rules due to Penske Corporation’s voting power; half of Penske Corporation’s deemed shares are pledged under a loan facility; Voting Agreement caps “Excess Voting Securities” influence above 43.57% by requiring pro‑rata voting—structures mitigate controller risk but imply governance sensitivity .
- RED FLAGS:
- Controlled company status increases reliance on independent committee leadership for minority shareholder protections .
- Pledging by controlling shareholder (Penske Corporation) at 50% of deemed shares could introduce liquidity/forced‑sale risk in stress scenarios; not attributed to Smith’s own holdings .
Director Compensation Notes
- No meeting fees; cash/equity mix selectable; deferral options for cash into notional accounts (50% S&P 500 index fund/50% bond fund) and equity into DSUs with dividend equivalents .
- Charitable matching up to $50,000 per director annually; directors may elect vehicle use or $20,000 stipend (many choose stipend) .
Additional Context
- Audit Committee membership (2024): Greg Smith (Chair), Kimberly McWaters, John Barr, Ronald Steinhart .
- Nominating & Corporate Governance Committee oversees ESG practices/reporting; Executive sessions led by Lead Independent Director (H. Brian Thompson) .
- Say‑on‑pay: 98% approval in prior year; clawback policy and hedging prohibition apply to directors and officers .