New GM's Executive Compensation Revealed

Edward Niedermeyer
by Edward Niedermeyer

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

Edward Niedermeyer
Edward Niedermeyer

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  • Kericf Kericf on Jun 09, 2010

    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.

  • Invisible Invisible on Jun 09, 2010

    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.

  • Wolfwagen I have worked as a manager in both union and non-union locations. The best union employees were the ones who were indifferent to the union or told them to get bent. The worst ones were the ones who would run to the union for every little thing, even when it was their own actions that caused the problem or because they could not understand their own contract
  • Harry HOW i RECOVER MY LOST OR STOLEN FUNDS:You should gather and document all relevant details about the theft, such as transaction IDs, wallet addresses, and any communication with the scammer if any, and then proceed to message SYLVESTER. G. BRYANT to get back your lost/ stolen funds by sharing the evidence you've compiled. he was the only one who was able to recover my funds I was so surprised he got back my money worth $52k but glory be to God and all thanks to him.. here is his contact below: Instagram: Yt7crackerszEmail: Yt7crackersz@ gmail,com
  • Daniel J I had read an article several years ago that one of the issues that workers were complaining about with this plant is that 1/3 of the workforce were temporary workers. They didn't have the same benefits as the other 2/3 of the employees. Will this improve this situation or make it worse? Do temporary workers get a vote?I honestly don't care as long as it is not a requirement to work at the plant.
  • Kosmo Tragic. Where in the name of all that is holy did anybody get the idea that self-driving cars were a good idea? I get the desire for lane-keeping, and use it myself, occasionally, but I don't even like to look across the car at my passenger while driving, let along relinquish complete control.
  • Bof65705611 There’s one of these around the corner from me. It still runs…driven daily, in fact. That fact always surprises me.
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