New GM's Executive Compensation Revealed
With a GM IPO in the fourth quarter of this year looking more likely than ever, GM has revealed just how much its top management stands to gain from the automaker’s post-bailout share offering. Based on trading of Motors Liquidation bonds, which GM will convert into stock and warrants, a JP Morgan Chase report pegs the company’s value at $70b. Based on yesterday’s bond trading prices, however, BusinessWeek estimates new GM’s value at $48b. With a float of 500m shares planned, that puts GM’s current stock price at about $96/share. With that in mind, let’s take a quick look at GM’s planned executive stock compensation.
The Detroit News took a look at GM’s SEC filings, and reports on the following stock compensation packages:
• Chairman and CEO Ed Whitacre: 24,547 shares of salary stock. ($2.36m at $96/share)
• Vice Chairman Steve Girsky: 18,063 salary stock units. ($1.73m)
• Chris Liddell, vice chairman and chief financial officer: 15,979 shares of salary stock ($1.53m). His compensation package totals $6.27 million, $900,000 of which is cash.
• Tom Stephens, vice chairman of global product operations: 50,521 shares of restricted and salary stock. ($4.85m)
• Tim Lee, president of GM’s international operations: 25,440 shares of restricted and salary stock. ($2.44m)
• Nick Reilly, president of GM Europe: 31,438 shares of restricted and salary stock. ($3.02m)
• Mark Reuss, North American president: 25,104 shares of restricted and salary stock. ($2.41m)
• Mary Barra, vice president of global human resources: 12,957 shares of restricted and salary stock. ($1.24m)
• Selim Bingol, vice president of communications: 258 shares of salary stock. ($24,768)
• Vice President and Chief Information Officer Terry Kline: 12,959 in restricted and salary stock. ($1.24m)
• Vice President Michael Millikin, legal and general counsel: 19,142 in restricted and salary stock. ($1.84m)
• Nick Cyprus, vice president, controller and chief accounting officer: 19,002 shares of salary stock. ($1.82m)
In short, your bailout of GM is going to make more than a few millionaires… assuming these guys aren’t all there already. Say what you want about Rick Wagoner, at least he was willing to work Iacocca-style for a dollar a year… although that would probably still qualify as overpayment relative to services rendered.
In any case, what say you to these compensation levels? And how about the stock valuation? I
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Am I missing something here? How could JP Morgan claim they are worth $70 billion?!?!?! Pre-bankruptcy they were only valued at $40 some billion right? What has happened to almost double the company's value? If anything they should be worth much less now since they shed brands, plants, and other assets.
Sorry, Every effing penny from the GM stock should be returned to the taxpayers. Those corrupt executives that ran GM into the ground don't deserve a penny. WE, the tax payers are still paying to clean up after the mismanagement of GM. http://detnews.com/article/20100519/AUTO01/5190378/Feds-devote-$800M-to-clean-up-abandoned-GM-sites So the executives and Obama are pulling a fast one here. The "OLD" GM is still milking the taxpayers to pay for the bad decisions all those executives made. Just last month in the above link, we are being milked for ANOTHER 800 million to clean up after these crooks. Now these crooks are lining up to milk us out of millions in stocks. BOYCOTT GM.