One of the chores awaiting General Motors’ new Chief Financial Officer, Chris Liddell, will be to pull the books in order following the maker’s well-publicized bankruptcy, a critical step towards GM’s planned Initial Public Offering.
But creative accounting is also part of the duties. GM, like other companies living off of federal bailout money, has to live within strict pay limits for its senior executives, a real problem when it comes to attracting good talent to the troubled automaker, which presumably Liddell is.
The solution? A package that includes not only $750,000 in annual salary for the New Zealand native, but nearly $5.5 million more in stock. Of course, that depends on GM pulling off the IPO, which would bring the company public again, allowing it to actually trade stock.
That could happen as early as 2010 – though Chairman and Acting CEO Ed Whitacre cautioned, earlier this month, that he will not be rushed to stage the IPO before the company is ready. GM lost $1.2 billion in its last quarter, hardly the kind of results to encourage potential investors to buy the stock.