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GM’s Akerson Takes Home $11.1 Mil, up 44%.

CEO adds millions in stock to base pay.

by on Apr.25, 2013

GM CEO Dan Akerson with the Chevrolet Volt.

General Motors Chairman and CEO Dan Akerson got a 44% increase in total compensation last year, taking home a total of $11.1 million in total compensation.

That news, detailed in a federal filing, comes after GM tried to downplay earlier reports that the executive was looking for a big pay hike despite the limits imposed by the terms of the maker’s 2009 federal bailout.

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Akerson continued to receive a base salary of “just” $1.7 million last year, the same as in 2011. The big jump came in stock awards that rose by 57%, year-over-year, to $9.3 million.  That includes $2 million in restricted stock options he won’t be able to cash out on until at least 2014.  The executive also received $70,149 in miscellaneous compensation, up from $55,514 in 2012.


GM CEO Akerson Could Get $11Mil Paycheck with Fed Approval

Payout would mark a 20% increase for 2013.

by on Feb.26, 2013

GM Chairman and CEO Dan Akerson testifying before Congress last year.

General Motors Chairman and CEO Dan Akerson could see a 20% increase in his paycheck for 2013, total compensation jumping to $11.1 million – if he can get the numbers approved by the U.S. Treasury Department.

As one of the top executives at GM, Akerson’s pay must be approved by Washington under terms of the automaker’s 2009 bankruptcy bailout – another reason why insiders say GM management is anxious to shed federal oversight as the Obama Administration moves ahead with plans to sell off its remaining stake in the maker by early 2014.

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Akerson’s proposed paycheck compares with a $9 million package in 2012 that included bonuses and $1.7 million in salary. The one-time telecomm industry executive is currently the lowest paid of Detroit’s Big Three CEOs, with both Ford Chief Executive Alan Mulally and Chrysler CEO Sergio Marchionne taking home more than $20 million each – though Marchionne’s package includes money he earned as CEO of Chrysler’s Italian partner Fiat SpA.


GM Execs’ Pay Frozen by Feds

Government overseer rejects pay hikes at companies bailed out by feds.

by on Apr.09, 2012

GM CEO Dan Akerson testifying before Congress earlier this year.

Pity poor Dan Akerson.  He’s delivered the sort of financial turnaround seldom seen in the business world, taking once-bankrupt General Motors to multi-billion-dollar profitability.  But that won’t be enough to earn him a pay hike this year, according to the U.S. Treasury Dept., which has the final say on compensation for the maker’s top 25 executives.

Don’t pity Akerson too much.  He’ll still take home about $9 million this year, including $1.7 million in salary and another $7.3 million in various forms of stock compensation.  But that’s significantly less than his crosstown counterparts.  Ford Motor Co. CEO Alan Mulally got a $29.5 million pay package, the maker announced last week, on top of more than $57 million in long-term stock compensation.

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The federal government began overseeing the salaries of GM executives in 2009 along with those at other companies who received bailout funds under the so-called TARP program.  Most of those firms have since paid off their loans and are no longer subject to the review of a federal pay overseer.  But GM — which is still 26.5% owned by the Treasury – is still covered, as are Ally Financial, the former GMAC, and giant AIAG.


Big Payday for GM’s Akerson

But payout is a pittance compared to Ford’s Mulally.

by on Mar.20, 2012

GM Chairman and CEO Akerson won't be able to cash out for several years.

General Motors Chairman Dan Akerson is getting a big payday – though he won’t be able to cash the check for a couple of years.

Akerson, who also serves as GM’s chief executive has been awarded 76,249 shares of restricted stock, according to paperwork the maker has filed with the federal government –which still owns about a third of GM’s stock and has oversight on pay issues for the company’s top executives.

Based on the recent price range for GM stock that would work out to somewhere around $2 million — $1.94 million, to be precise, based on what the shares closed at on Monday.  But if GM stock comes close to the $33 it commanded when the maker held its November 2010 IPO that would add more than $500,000 to the payout.

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Akerson will have time to wait and see, as he cannot cash in for several more years.  He can convert two-thirds of the award to common stock on March 15, 2014 and the rest a year later.  And he will have to remain a continuous GM employee for the duration or risk losing his stock bonus.


“Jobs, Jobs, Jobs” for UAW

Union leaders release formal GM contract details.

by on Sep.20, 2011

GM CEO Dan Akerson and UAW President Bob King shaking hands at the start of the latest round of contract talks, in July.

It was all about “jobs, jobs, jobs” for United Auto Workers Union negotiators as they hammered out their new 4-year contract with General Motors, union leaders said today as they revealed the specific details of the settlement.

But the agreement also contains some significant economic improvements – especially for newly-hired “second-tier” employees who have been earning about half as much as veteran GM workers.

The new contract now goes to a vote by GM’s 64,000 U.S. hourly employees – even as union bargainers resume pick up talks with Chrysler and Ford Motor Co.

“The basis that we went into the agreement with was jobs, jobs, jobs and I think that is what we came out of this agreement with,” said UAW Vice President Joe Ashton.

As first reported over the weekend, under the new contract, GM has agreed to add new products at four plants in Michigan, Tennessee and Missouri.  That should result in the addition of 6,400 UAW jobs.

And, by agreeing to steps that will further enhance GM’s productivity, additional jobs could be created, as well, according to union and company sources.

On the financial side, the UAW won workers a $5,000 signing bonus.  And while the old cost-of-living allowances were not revived there is the potential for up to $4,000 in “inflation protection” during the life of the agreement.

Significantly, the UAW’s profit-sharing formula was enhanced and would have earned each worker $5,000 for 2010, up from the actual $4,300 payout.

One of the toughest battles for bargainers was over the two-tier wage structure long opposed by the UAW but approved as part of a raft of concessions in 2007.  Entry-level workers currently earn between $14 and $16 in wages and benefits.  Over the life of the 4-year contract that will be increased by $3 an hour.  And second-tier workers will get improved medical care, as well.

“Getting that wage up over $19 an hour was very important to us,” said Ashton.

Some workers are still expressing frustration that the two-tier system wasn’t eliminated entirely, but that is not expected to scuttle the ratification vote on the new GM contract, which is expected to stretch out over the next 10 days.

Even before then the union will resume bargaining with Detroit’s other two automakers, said UAW President Bob King, though he said the union has yet to decide which will be the initial focus as Auto Workers aim to finish this year’s negotiations.

Top GM Execs Awarded Millions in Stock

Value depends on going public, estimates run to $13 million.

by on Jun.07, 2010

Why is this man smiling? GM CEO Ed Whitacre stands to make millions on a new stock award.

A dozen top General Motors executives will share millions in a potential stock bonanza added to their base pay, the automaker revealed Monday in Security and Exchange Commission filings.

The stock could help sweeten things for senior GM managers, many of whom have seen their pay restricted by the Treasury Department’s special compensation master as part of the terms of the $50 billion bailout that pulled the automaker out of bankruptcy last year.

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While the precise value of the new shares will ultimately depend upon the success of GM’s planned Initial Public Offering, or IPO, some observers estimate the latest round of incentives will be worth $13 million or more.