The Truth About Cars » pay http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Mon, 08 Dec 2014 12:00:07 +0000 en-US hourly 1 http://wordpress.org/?v=4.0.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » pay http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com Akerson Gets Millions More In Cash To Grease His Exit http://www.thetruthaboutcars.com/2013/04/akerson-gets-millions-more-in-cash-to-grease-his-exit/ http://www.thetruthaboutcars.com/2013/04/akerson-gets-millions-more-in-cash-to-grease-his-exit/#comments Fri, 26 Apr 2013 16:48:43 +0000 http://www.thetruthaboutcars.com/?p=486303 Companies – or so they say – pay their executives the big bucks to keep them from leaving, or, in corporate-speak to “retain” them. In the case of GM CEO Dan Akerson, they pay him more because he will leave. Nasty people will say “to make him leave.” Claiming that its 64-year-old CEO may retire […]

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Companies – or so they say – pay their executives the big bucks to keep them from leaving, or, in corporate-speak to “retain” them. In the case of GM CEO Dan Akerson, they pay him more because he will leave. Nasty people will say “to make him leave.”

Claiming that its 64-year-old CEO may retire soon, GM changed Akerson’s package for 2012. Instead of a mix of “Restricted Stock Units,” (which Akerson would have to keep in the kitty for three years) and “Salary Stock Units” (which he can trade in immediately), Akerson received everything in immediately trade-inable stock, “in acknowledgement of the possibility of his retirement before the completion of the three-year vesting period for RSUs,” a filing with the SEC shows. It’s good to know that Akerson won’t have to worry about his retirement (like some Delphi managers, for instance.)

It is not immediately clear how much money Akerson really made.

Realized Annual Compensation
Chairman & CEO, Daniel F. Akerson
2011 2012
Annual Compensation
Salary $1,700,000 $1,700,000
Stock Awards
SSUs $5,284,238 $7,346,373
RSUs Earned (1) $1,986,286
All Other Compensation $55,514 $70,149
Total $9,026,038 $9,116,522
Annualized Compensation $9,026,038 $9,116,522

One table makes us believe he made $9.1 million in 2012.

Name and Principal Position Year Salary Stock Other Total
Daniel F. Akerson (1) 2012 $1,700,000 $9,332,659 $70,149 $11,102,808
CEO 2011 $1,700,000 $5,947,229 $55,514 $7,702,743
2010 $566,667 $1,766,664 $194,088 $2,527,419

Another table says Akerson made $11.1 million.

Bloomberg, which is better at deciphering these filings, is convinced that “Akerson’s compensation, which is subject to government review because of GM’s 2009 U.S. bailout, increased 44 percent to $11.1 million last year.”

At the RenCen, people claim ignorance when it comes to Akerson’s retirement plans. “We certainly wouldn’t speculate on what he will actually do — that’s up to him,” spokesman Tom Henderson told Bloomberg.

And who will be the man or woman after Akerson? According to Bloomberg, the folks in the running are Steve Girsky, Mary Barra, and TTAC commenter NADude, also known as Mark Reuss.

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House Committee Blasts Overpaid Bailed-Out Execs. The Freep Blasts GM http://www.thetruthaboutcars.com/2013/02/house-committee-blasts-overpaid-bailed-out-exes-the-freep-blasts-gm/ http://www.thetruthaboutcars.com/2013/02/house-committee-blasts-overpaid-bailed-out-exes-the-freep-blasts-gm/#comments Wed, 27 Feb 2013 17:57:31 +0000 http://www.thetruthaboutcars.com/?p=479336 Yesterday, the House Oversight and Government Reform subcommittee held a hearing to look into executive compensation “at bailed-out firms that is egregiously out of line with what the President committed to the American people,” as Chairman Jim Jordan said. Jordan recalled that the President had committed “that top executives at firms that receive extraordinary help […]

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Yesterday, the House Oversight and Government Reform subcommittee held a hearing to look into executive compensation “at bailed-out firms that is egregiously out of line with what the President committed to the American people,” as Chairman Jim Jordan said. Jordan recalled that the President had committed “that top executives at firms that receive extraordinary help from U.S. tax payers will have their compensation capped at half a million dollars.” That clearly wasn’t the truth. Yesterday, we heard that GM CEO Dan Akerson, for example, made $9 million in 2012 and wanted $11.1  this year. Jordan said that “Treasury’s failure to protect tax payers is part of a disturbing pattern in which this administration makes promises to the public but the does not live up to them.” That’s not the only pattern that is disturbing.

Fight government waste, advance to 8:45

Yesterday, media outlets, including TTAC, received a message from GM spokesman Alan Adler, complaining about “leaked documents” and that “reports that General Motors has requested an increase in Dan Akerson’s 2013 compensation are false. In fact, Dan specifically asked to keep his compensation at the same level for 2013 as it was in 2012 and 2011.”

With this statement, GM continued the pattern of alienating its last friends. The Detroit Free Press, which initially had published the documents, writes today  that “GM called the report false, though the committee later released the same document showing a proposed total compensation package of $11.1 million for Akerson.” The Freep then put its finger on an even more embarrassing fact:

It turns out that Akerson already made $11.1 million in 2012, “because he was allowed to cash in stock awards he received in 2011,” the Freep says. So, $11.1 million in 2012 and $11.1 million in 2013 wouldn’t be a raise. At least not this year, sure. Splitting hairs may work in court, but not in the court of opinion. Trying to be too smart often looks very stupid.

We have linked to the full recording of the hearings. They are another example of Government waste, in this case of bytes and bandwidth. The first 8 minutes and 45 seconds are a recording of nothing. Your tax dollars at work.

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Dan Akerson Wants a Big Raise, Washington Sugar Daddy Not Sure Yet, GM Says: Not True! http://www.thetruthaboutcars.com/2013/02/dan-akerson-wants-a-big-raise-washington-sugar-daddy-not-sure-yet/ http://www.thetruthaboutcars.com/2013/02/dan-akerson-wants-a-big-raise-washington-sugar-daddy-not-sure-yet/#comments Tue, 26 Feb 2013 13:29:53 +0000 http://www.thetruthaboutcars.com/?p=479138 GM’s CEO Dan Akerson asked for a big raise. He thinks his work at GM is worth a paycheck of $11.1 million this year, up 20 percent from last year,  Reuters reports, citing documents. The embarrassing part: Akerson and GM have to ask its white House sugar daddy for approval. As part of GM’s government-funded […]

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GM’s CEO Dan Akerson asked for a big raise. He thinks his work at GM is worth a paycheck of $11.1 million this year, up 20 percent from last year,  Reuters reports, citing documents. The embarrassing part: Akerson and GM have to ask its white House sugar daddy for approval.

As part of GM’s government-funded bailout, the salaries of  GM executives must be authorized by a special paymaster from the federal government. The request for a raise comes at an inopportune time.

Last month, the special paymaster faced strong criticism from the TARP Special Inspector General . The report said the government “continues to award excessive pay packages.” It also flogged executives who “continue to lack an appreciation for their extraordinary situations and fail to view themselves through the lenses of companies substantially owned by the U.S. Government.”

The report published the 2012 pay packages of executives of bailed-out companies and said:

“In stark contrast, the 2011 median household income of U.S. taxpayers who fund these companies was approximately $50,000.”

Akerson’s request for a pay raised is part of documents that were published a day before a U.S. House Oversight and Government Reform Committee would be looking into whether the U.S. Treasury has allowed excessive executive pay at companies aided by the Troubled Asset Relief Program.

Meanwhile in Germany, Volkswagen CEO Martin Winterkorn applied for, and received, a salary reduction.  Based on Volkswagen’s record $29 billion profit, Winterkorn was entitled to a bonus that would have raised his  2012 remuneration to €20 million ($26 million.) Last week,  Volkswagen’s supervisory board ruled that Winterkorn will be paid a total of 14.5 million euros ($19.17 million) for 2012 in fixed salary, bonuses and incentives, compared with 17.5 million a year earlier.

Winterkorn’s private taxi

A U.S. Treasury Department official said no determinations has yet been made for the 2013 compensation of GM execs. Once the government is out at GM, no more embarrassing requests for raises.  Also, GM execs will get their jets back. This must be the most embarrassing part: While RenCen execs must fly commercial, Winterkorn has his private Airbus A319CJ, along with a fleet of Dassault Falcons.

In the meantime, GM spokesman, manager of News Relations and GM Media Online, Alan Adler said:

“Reports that General Motors has requested an increase in Dan Akerson’s 2013 compensation are false. In fact, Dan specifically asked to keep his compensation at the same level for 2013 as it was in 2012 and 2011. That amount of $9 million is what the company submitted to the Office of the Special Master for TARP Executive Compensation.

Unfortunately, someone who obviously did not understand the compensation request leaked the information in a way that misrepresented the truth in order to score political points on the eve of a congressional hearing.”

Adler asked “that media outlets, including TTAC, that reported the false story correct the record.” Done!

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