GM cuts CEO compensation
DETROIT (AP) – Former General Motors CEO Dan Akerson’s compensation fell 18 percent last year to just over $9 million, which the company said was due to the timing of stock awards.
Akerson, who stepped down in January, earned $1.7 million in salary, the same as in 2012, but his stock awards fell by almost $2 million to $7.3 million.
Spokesman Tom Henderson said the decline wasn’t based on his performance. Akerson’s short-term stock awards were bumped up in 2012 in anticipation of his 2014 retirement, and he gave up some long-term stock awards for 2013 when he retired in January, Henderson said.
Akerson’s replacement, Mary Barra, received compensation worth just over $5.2 million last year in her role as global product development chief, up 12 percent from 2012. GM already has disclosed that she’ll get a package this year that the company values at $14.4 million, including a long-term incentive target of $10 million.
The company disclosed the pay packages Friday in its annual proxy filed with the U.S. Securities and Exchange Commission.
GM’s net income last year was $3.8 billion, down 22 percent from $4.9 billion in 2012. The company said in its filing that under Akerson, 65, GM passed many milestones last year. It reported its fourth straight year of profitability and revenue growth, and was freed from U.S. government ownership. GM also grew further in China, cut losses in Europe, raised quality and launched 36 new vehicles worldwide.
Akerson’s compensation last year included $27,254 for security, and vehicles and drivers.
The Associated Press formula calculates an executive’s total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in some cases from the total reported by companies to the Securities and Exchange Commission.