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GM Denies CEO Demanding 20% Pay Hike

Pay request “misrepresented,” says maker.

by on Feb.26, 2013

GM Chairman and CEO Dan Akerson will seek no pay hike for 2013, the maker insists.

With a Congressional oversight committee set to review pay policies for companies covered by federal bailout funds, General Motors says it will not ask for an increase in the compensation package for Chairman and CEO Dan Akerson.

It had been widely reported that the maker would seek a 20% boost in the executive’s pay for 2013, which would bring it to a total of $11.1 million, according to documents quoted by the Detroit News. In fact, GM said in a statement issued this morning, “Reports that General Motors has requested an increase in Dan Akerson’s 2013 compensation are false.”

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The maker says the CEO will again receive a package totaling $9 million, matching his 2013 pay which included both bonuses and $1.7 million in base salary.

“Unfortunately, someone who obviously did not understand the compensation request leaked the information in a way that misrepresented the truth in order to score political points on the eve of a congressional hearing,” the automaker said in a statement this morning.


Government Recoups Nearly $12 Bil On GM IPO

Taxpayer Losses Narrowing.

by on Nov.24, 2010

Taxpayers still stand to lose as much as $9 billion on GM's bailout - unless subsequent offerings rise to nearly $53 per share.

U.S. taxpayers have gotten a nearly $12 billion check from General Motors, the proceeds from the sale of 40% of the government’s holdings in the automaker during GM’s IPO, last week.

The maker’s return to public trading proved an unanticipated success, with GM and its underwriters both raising the price of the initial offering – to $33 a share from an earlier projected low of $26 – and adding significantly more shares to the pot than first planned.  After deducting underwriter fees, the Treasury will keep $11.7 billion.

Nonetheless, taxpayers would stand to lose as much as $9 billion on the $49.5 billion GM bailout unless the price tag on later sales of Treasury-held stock is increased to at least $52.80 a share, analysts reported.

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The government now estimates its potential loss on last year’s $85 billion in auto bailouts – which also include Chrysler and the captive finance company now known as Ally – at $17 billion.  Earlier this year, the likely loss was forecast to reach as much as $30 billion.

Nonetheless, government officials defended the bailouts, which began under former President George W. Bush but were then significantly expanded when his successor, Barack Obama, moved into the White House.