GM's new CEO Mary Barra will earn more than Dan Akerson, her predecessor.
Any of the handwringing over whether or not General Motors CEO Mary Barra is getting equal pay for equal work was put to rest today: she’s not, she’s getting more.
GM revealed that her compensation for Barra will be about $14.4 million, which is 60% higher than what her predecessor, Dan Akerson, received in 2013. The maker released the information early – two months of ahead of scheduled – to deflect criticism leveled at the company that it was not paying her what they paid Akerson.
“The company released the full figures … to correct misperceptions created by comparisons that used only a portion of Barra’s overall compensation,” GM said in a statement.
Initially, GM said Barra’s salary and short-term stock compensation would total $4.4 million for the year. Her long-term stock incentives would be revealed in April. Akerson was paid about $9 million in his final year as CEO, but his compensation was capped by the U.S. Treasury Department because the government still owned GM shares.
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Barra’s not limited by the same restrictions because the U.S. Treasury lifted those restrictions when it sold the rest of its shares in January.
Barra’s 2014 compensation breaks down this way:
- $1.6 million in salary
- $2.8 million in short-term stock incentives
- $10 million in long-term compensation
The long-term compensation is likely tied to performance metrics, so Barra won’t receive some of the long-term compensation until later. Securities and Exchange Commission regulations require companies to place a current value on deferred compensation.
(Click Here to review GM’s earnings for 2013.)
“As a new CEO, Mary’s total compensation is in line with her peer group and properly weighted so that most is at-risk,” said GM Chairman Tim Solso. “The company’s performance will ultimately determine how much she is paid.”
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Akerson , who retired from the CEO post on Jan. 15, is getting a $1.7 million salary as well as $2.975 million in short-term stock incentives while serving in an advisory capacity this year. Compensation packages for its five highest-ranking executives will be released in April, GM said.