Incoming General Motors CEO Mary Barra and departing General Motors CEO Dan Akerson at the North American International Auto Show in Detroit on Tuesday. (David Coates / The Detroit News)
General Motors’s new chief executive, Mary Barra, will get a pay package worth at least $4.4 million, the automaker said late Friday.
Her predecessor, Dan Akerson, who turned over the job to Barra Wednesday, will remain on the GM payroll as a senior adviser. He’ll get an annual cash salary of $1.7 million, and be eligible for an additional $2.975 million under the short-term incentive plan, for a total of $4.7 million. GM said it expects Akerson to be employed for less than a year as an adviser. Unlike other GM executives, Akerson will not be eligible for any long-term incentive pay in 2014.
Barra’s pay package includes a cash salary of $1.6 million, plus benefits, and she will be eligible to receive another $2.8 million in compensation under the company’s short-term incentive plan, which sets performance goals..
Hers total compensation package won’t likely be known until spring, when GM shareholders are expected to be asked to approve a new long-term compensation plan for senior executives.
Last year Akerson, who was also chairman of the board, received a $9 million total compensation package, including $1.7 million in cash. That pay package and those of the other top 25 executives were approved by the Treasury Department because GM receieved money from the auto bailout fund. Since the government exited GM last month, the Treasury no longer has pay oversight.
In August, Bloomberg News reported 15 female CEOs in the U.S. made at least $13 million in total compensation last year. Oracle co-president and chief financial officer Safra Catz earned $52 million -- the highest paid female executive last year, Bloomberg said. Other top-paid female executives included IBM CEO Virginia Rometty, who earned $16.2 million, and Yahoo CEO Marissa Mayer, who earned $36.2 million.
Xerox chairman and CEO Ursula Burns made $13 million, PepsiCo CEO Indra Nooyi earned $14.2 million in total compensation
GM's CEO pay has lagged behind other auto executives. Last year, Ford CEO Alan Mulally made $21 million in total compensation, falling 29 percent and Chrysler-Fiat CEO Sergio Marchionne made close to $20 million in payment.
Then GM CEO Dan Akerson sa ind December that GM is going to change executive compensation metrics to be “more performance oriented.”
The plan, which has not been approved yet,would pay GM executives who help deliver quality, but if they miss, then they wouldn’t receive that compensation, Akerson said.
GM, in its proxy filing last year, said Akerson’s $9 million annual compensation was below the 10th percentile for 2012, and that pay for Barra was below the median.
According to GM’s pay announcment Friday, Vice Chairman Steve Girsky’s cash salary will total $600,000 and he is eligible to receive $750,000 under the short term-incentive plan. Like Akerson, Girsky is expected to be employed for less than a year, and will not get long-term incentive pay.
Dan Ammann, GM’s new president, will receive a cash salary of $900,000 this year and is eligible to receive another $1.125 million under the incentive plan.
GM said it believes at the company’s 2014 annual meeting, a new long-term incentive plan will be submitted for approval by stockholders.