GM Bonuses for Salaried Employees Down, Most Still Far Exceed Those for Hourly

Matthew Guy
by Matthew Guy

We posted earlier about the fact that many hourly employees at General Motors could enjoy five-figure bonuses this year, thanks in part to tweaks in the UAW agreement and a banner year for profits. Now, word has leaked about bonuses for the salaried. They may be down from last year – but many remain far higher than the ones paid to hourly employees. 

As a refresher, over 42,000 UAW employees at The General can expect a bonus check somewhere in the neighborhood of $12,750 when they look at their direct deposit slips later this month. This is a result of the company recording just under $10 billion dollars in earnings for the 2022 calendar year, plus the removal of a $12k cap on these types of bonuses. That change was apparently negotiated during the 2019 round of talks.

Meanwhile, some salaried personnel could be in for an even bigger payday. According to the Detroit Free Press who are citing the review of an internal memo, a senior-level manager making a $200,000 annual salary could net an eye-popping bonus of $75,840. Despite that outsized figure, it is apparently south of the $96,000 the same person could have theoretically gotten in 2021. It is estimated someone making 80 grand would be in line for a $12,600 payday; a person with a newly-minted salary right at six figures could see an extra $20,540.

Your author will take a moment to digest these numbers.

Bonuses for salaried workers, again according to that memo viewed by the Freep, are based on a ‘158 percent’ factor which is calculated as a derivative that factors in various GM-set annual performance targets. These targets are beyond simple earnings results, apparently. Last year, it is said that the same factor was ‘200 percent’, suggesting GM outstripped its own internal targets in 2021 to a greater degree than it did last year – even though public forward-facing numbers may have appeared to tell a different story. Since anyone blessed with the gift of basic numeracy knows that 158 is lower than 200, it’s logical to speculate that some salaried bonuses may be lower this year than last.

Again, these bonuses – for both salaried and hourly – are apparently possible thanks to company performance in 2022, which beat the expectations of Wall Street. Interestingly, bonuses for the salaried are apparently doled out at the discretion of a person’s manager, so it is suggested by those in the know that a person may not get the full bonus for which they are eligible if their performance is poor. Insiders say that is rare. The inverse goes for top performers, brown nosers, and teacher’s pets who stand to potentially get a bigger bonus than the one arrived at by the internal calculation.

[Image: The author]

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Matthew Guy
Matthew Guy

Matthew buys, sells, fixes, & races cars. As a human index of auto & auction knowledge, he is fond of making money and offering loud opinions.

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2 of 28 comments
  • 95_SC 95_SC on Feb 01, 2023

    If management is so d@mn easy as all these union folks love to proclaim anytime a manager gets paid then maybe they should just go be a manager? No? Ok well shut the heII up and get your a$$ back on the line and try to put the fncking car together correctly for a change

  • Redapple2 Redapple2 on Feb 04, 2023

    Game theory > prisoners dilemma. volumes will increase. $10,000 on the hood will return.

  • Scott What people want is the Jetson Car sound.This has come up before.
  • Joerg I just bought a Corolla Cross Hybrid SE a few weeks ago, and I regret it. But not for any of the reasons stated so far. It drives well enough for me, gas mileage is great for a car like that, the interior is fine, nothing to complain about for normal daily use. I bought this relatively small SUV thinking it is basically just a smaller version of the RAV4 (the RAV4 felt too big for me, drives like a tank, so I never really considered it). I also considered the AWD Prius, but storage capacity is just too small (my dog would not fit in the small and low cargo space).But there are a few things that I consider critical for me, and that I thought would be a given for any SUV (and therefore did not do my due diligence before the purchase): It can’t use snow chains per the manual, nor any other snow traction devices. Even with AWD, snow chains are sometimes required where I go, or just needed to get out of a stuck situation.The roof rack capacity is only a miniscule 75 lbs, so I can’t really load my roof top box with stuff for bigger trips.Ironically, the European version allows snow chains and roof rack capacity is 165 lbs. Same for the US Prius version. What was Toyota thinking?Lastly, I don’t like that there is no spare tire, but I knew that before the purchase. But it is ridiculous that this space is just filled up with a block of foam. At least it should be made available for additional storage. In hindsight, I should have bought a RAV4. The basic LE Hybrid version would have been just about 1k more.
  • MaintenanceCosts Looks like the best combination of capability, interior comfort, and subtle appearance can be achieved by taking a Laramie (crew cab, short bed, 4x4 of course) and equipping it with the Sport Appearance, Towing Technology, and Level 2 packages as well as a few standalone options. That's my pick.Rebel is too CRUSH THAT CAN BRO and Limited and up are too cowboy Cadillac.
  • Xidex easier to buy a mustang that already sounds like that. love the coyote growl
  • Oberkanone Shaker motor on an EV. No thanks.