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Mon February 10, 2014
GM Says New CEO Will Earn 60 Percent More Than Male Predecessor
General Motors took the unusual step of releasing full details of their new CEO's pay package.
All told, Mary Barra could make $14.4 million this year, or about 60 percent more than her male predecessor.
As Bloomberg reports, last week the automaker was criticized for paying Barra too little. Her compensation, which news reports put at $4.4 million, was seen as living proof that corporate America pays women a lot less for doing the same job as a man.
Today, GM released the figures saying it wanted "to correct misperceptions created by comparisons that used only a portion of Barra's overall compensation."
"After becoming the first big car company to put a woman in the corner office, GM definitely didn't want to be seen as underpaying her, as some reports last week had said.
"Those failed to note her long-term compensation, because GM had not disclosed that at the time. CEOs get a large portion of their compensation in awards tied to stock performance, to ensure their interests and stockholders' are the same.
"Barra's package is $1.6 million in salary, $2.8 million in short-term incentives and long-term compensation of $14.4 million."
Bloomberg adds that her total compensation could put Barra among the top three car executives. Ford's Alan Mulally earns $21 million; VW's Martin Winterkorn earns $19.8 million; Diamler's Deiter Zetsche earns $11.1 million.
The Detroit Free Press says former CEO Dan Akerson:
"... was paid about $9 million in his final year as CEO. His compensation was capped by the U.S. Treasury Department while the government still owned GM shares. The U.S. Treasury lifted those restrictions when it sold the rest of its shares in January."