In a time when a struggling economy and high unemployment plague the nation, executive pay proved to be a touchy subject in 2010, especially for those at bailed out automaker General Motors, as their top executives’ pay faces scrutiny from government oversight.
Following the mixed feelings surrounding the handsome compensation package for Ford-savior and CEO Alan Mulally, GM’s latest leader brought home just $2.53 million for his contribution in 2010, or about 1/20th that of his counterpart at Ford. Keep in mind that he only spent four months at the helm, says The Detroit News.
Akerson’s compensation package breaks down to include a $566,667 salary for his work starting on September 1, 2010, and later $1.76 million in stock awards for his achievements in those four months. Before Akerson moved from the board to the helm of GM, Ed Whitacre Jr. served as CEO of GM, and for his work the former auto exec was paid $1.3 million in salary, and $3.5 million in stock awards.
Another big name in the auto industry, Bob Lutz, ruffled feathers of some in the Obama administration after work leaked that he had been advising executives for the automaker, despite previously retiring from his official position as vice chairman at The General. “There was premature publication that I would be compensated, and it caused a big stir in the Treasury Department,” Lutz said, referring to speculation that he had been hired without authorization by The Treasury Department.
The top paid executive for 2010 at GM would have been now-former chief financial officer Chris Liddell, but due to the former executive’s unexpected resignation he forfeited a full $3 million in stock awards. As a result, Liddell’s net take-home compensation for 2010 was a cool $3.2 million.
GM hopes to eliminate the need to face oversight for its executive compensation by repaying the federal government for the remainder of its loans sometime this year, but until then, it will continue to face government oversight due to the public stake in the company.
References
1.’GM’s Akerson paid…’ view
