GM Executive Pay: CEO Barra Has Lower Salary Than Akerson
Dan Akerson may be the departing chief executive of General Motors (NYSE:GM), but he will earn a higher base salary than new CEO Mary Barra in 2014, a filing by the automaker reveals. GM disclosed the executive pay of Barra, Akerson, and new President Dan Ammann, as well as new Chief Financial Officer Chuck Stevens and outgoing Vice Chair Steve Girsky, though the final tally will hinge on additional incentives finalized in spring 2014.
The SEC filing listed Mary Barra’s 2014 salary at $1.6 million with $2.8 million in additional pay potentially coming as part of the company’s short-term incentive plan. Akerson will receive $1.7 million in base salary plus $2.975 million in potential incentive pay for his role as a senior adviser. GM noted in its filing it “anticipates” Akerson will be employed for less than a full year, which will lead to his salary and incentives being pro-rated for the actual time spent in his role.
The same terms apply to Steve Girsky, the automaker’s Vice Chair prior to January 15, who will stay on as a senior adviser earning a salary of $600,000 with $750,00 in potential incentives available. President Dan Ammann’s base salary will be below the seven-figure mark.
According to the SEC filing, Ammann will earn $900,000 and have incentives that could top $1.125 million. New CFO Chuck Stevens will receive $700,000 in base salary with incentives that could pay as much as $875,000 in 2014. Though base salaries are set by the automaker, the final amount received by GM’s executives will depend on the long-term incentive model the company should have in place by April.
Using the incentive system, Dan Akerson earned over $11 million in 2012, the last year for which the numbers were available at the time of writing. GM stock fell close to 4 percent over the course of the trading week ending January 17.
Nonetheless, analysts continue to see an upside for the automaker with a twelve-month consensus price target over $48. According to Schaeffer’s, an overwhelming majority of analysts maintain “buy” ratings for GM, which at worst is considered a “hold” by a mere three analysts. None recommend selling GM.