General Motors Co., the largest U.S. automaker, is proposing to pay Chief Executive Officer Dan Akerson $11.1 million this year, according to a document obtained by Bloomberg News.
GM is planning $82 million in compensation for its top 25 executives, the document shows. While the names of the GM employees were redacted, Akerson was identified as the highest- paid by a person familiar with the material who asked not to be revealed disclosing private information. Akerson was paid $7.7 million for 2011, when his target compensation was $9 million.
Ally Financial Inc., formerly GM’s lending arm, wants to pay CEO Michael Carpenter $9.6 million, according to another document obtained by Bloomberg.
Pay for executives at seven bailed-out companies, including GM and Ally, was scrutinized and restricted by the Treasury starting in 2009. American International Group Inc., Bank of America Corp., Citigroup Inc., Chrysler Group LLC and Chrysler Financial Corp. have left the government’s Troubled Asset Relief Program and are no longer subject to the department’s pay rulings.
Greg Martin, a spokesman for GM, declined to comment on the specifics of the company’s pay proposal.
“GM complies with all TARP restrictions and special master decisions while we focus on driving solid business results for the company,” Martin said yesterday in a telephone interview. “We’ve provided the committee with the information it has requested and will continue to cooperate with the committee.”
The Detroit News earlier reported GM’s proposal for Akerson’s pay.
The House Oversight Committee is holding a hearing today on executive pay at companies whose compensation has been supervised by the Treasury.
Akerson is paid considerably less than Alan Mulally, the CEO of Ford Motor Co., the largest U.S. automaker to avoid bankruptcy in 2009. Mulally’s 2011 compensation rose 11 percent to $29.5 million. A few weeks before Ford revealed Mulally’s full-year compensation, the company gave him $58.3 million in stock as a reward for the automaker’s turnaround.
Daimler AG, maker of Mercedes-Benz luxury cars and heavy trucks, cut CEO Dieter Zetsche’s pay 5.8 percent amid a reduction in managers’ bonuses as the world’s third-biggest maker of luxury cars fell behind competitors in sales and dropped profit goals. His total compensation for 2012 totaled 8.15 million euros ($10.7 million).
Volkswagen AG said last week that CEO Martin Winterkorn will receive 17 percent less compensation.
© Copyright 2015 Bloomberg News. All rights reserved.