Government Will Limit, Reduce Pay for Akerson, Other Key GM Execs
CEO's 2012 compensation will be frozen at 2011 level.
Akerson received $9 million in 2011: his $1.7 million salary, $5.3 million in stock salary and $2 million in long-term restricted stock, according to the Detroit Free Press. Akerson announced Jan. 10 that he would not receive a cash bonus for 2011. In 2012, the Free Press writes, "His salary will remain unchanged, and the rest of compensation will come in the form of $7.3 million in performance-based stock salary with shares that are redeemable on an annual basis for three years."
The Treasury, which still owns approximately 24.5 percent of GM stock, has said that total compensation of GM execs fell by 12 percent from 2011 to 2012, or a total of $8.8 million. The government also announced that it would freeze or even reduce compensation for GM's 25 most highly paid executives, though some within the GM executive pool will receive raises.
The action to freeze or reduce compensation was undertaken by the special master for executive compensation under the Troubled Asset Relief Program, and similarly applies to AIG and Ally financial, formerly GMAC, two other companies on the receiving end of massive governmental financial assistance during the financial crisis.
[Source: Detroit Free Press; Automotive News.]
GM's stock is still at half the level it needs to be in order to pay back the Gov't loan. Freezing executive pay seems to be more of a PR gesture than anything else.
And to think us US tax payers bailed them out only for them to take a large slice for them selves.
That money could have been used to create more jobs but his vacation home in and Caribbean is more important.
Like many Americans, GM feels entitled. Ackerson, being the 4th GM CEO in less than 18 months is entitled to his share of the taxpayer dollars. Its too bad his pay doesn't match the subpar performance of GM's stocks which are still half of what they need to be in order to pay off their public debt. How long will it take for the shares to double? A looooooong time,
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