General Motors Company (NYSE:GM) Chief Executive, Dan Akerson, will not see a pay raise this year.
On Tuesday, the company denied reports that it had asked for the executive to receive a $2 million pay bump (20 percent), but instead said it requested Akerson receive a 2013 payday of $9 million–about the same as last year’s and 2011’s figure.
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GM has refuted documents had been provided to a U.S. House of Representatives committee on Monday, disclosing its proposed 2013 compensation plans of its 25 highest-paid executives.
The company said in a statement via Detroit Free Press,”In fact, Dan specifically asked to keep his compensation at the same level for 2013 as it was in 2012 and 2011. That amount of $9 million is what the company submitted to the Office of the Special Master for TARP Executive Compensation.” It also added, “unfortunately, someone who obviously did not understand the compensation request leaked the information in a way that misrepresented the truth in order to score political points on the eve of a congressional hearing.”
But how did the story start in the first place?
According to CNBC, it reviewed a GM document called “2013 Top 25 Proposal.” The executive at the top of the list had a $11.07 million total compensation.
The keyword is “total.”
General Motors Company (NYSE:GM) said the document in question had 2012 compensation; it had been prepared for the Treasury Department’s oversight committee. The company said Akerson’s total 2012 take home pay last year was $11.1 million, which included $2 million from restricted stock grants awarded in 2011 that had vested in the next year, reported CNBC.
The news came as the House Oversight Committee, which is chaired by Darrell Issa, R-Calif., spoke with Treasury Department officials on Tuesday about executive pay at those companies who received in 2009 aid through the Troubled Asset Relief Program.
From General Motors’ 2009 bailout, it must receive Treasury Department approval for the annual pay of its top 25 executives.
As for 2013 ‘s compensation, a U.S. Treasury Department official said, “As a general matter, the Office of Special Master does not comment on individual company proposals. But I would note that just because a company makes a particular proposal does not mean it will ultimately be approved.”
Not on GM’s side is Issa, who did not support taxpayers money going to them and Chrysler. He said on Tuesday that GM owes “its very existence” from the bailout; it also still has about $20 billion debt versus what had been invested in the company, reported the Detroit Free Press.
Regarding executive pay, the congressman said, “you don’t take an increase when your investors are in the negative.”
As for General Motors Company (NYSE:GM)’s executives, they have a different take. They believe the government’s pay restrictions dampers the company’s capability to gain top talent.
Akerson was formerly a private equity executive before joining GM as its CEO in September 2010. He made a lot more money in that role.