Mary Barra, the new chief executive officer of General Motors Company (NYSE:GM), will receive $14.4 million total compensation this year, which is $10 million higher than the amount previously disclosed by the automaker, according to a report from Bloomberg.
Subject to shareholder approval
General Motors Company (NYSE:GM) said Mary Barra might receive $10 million in long-term compensation as part of her compensation package. According to the automaker, the amount is subject to the approval of shareholders during the annual meeting in June, and the final amount of her compensation depends on the company’s performance.
In a statement e-mailed to the news agency, General Motors Company (NYSE:GM) wrote, “The company released the full figures ahead of its proxy filing in April to correct misperceptions created by comparisons that used only a portion of Mary Barra’s overall compensation.”
Mary Barra replaced Dan Akerson as CEO of General Motors Company (NYSE:GM) following his retirement last January 15. She previously served as executive vice president, global product development, purchasing and supply chain of the automaker.
Last month, General Motors Company (NYSE:GM) said Mary Barra will receive $1.6 million salary and $2.8 million short-term incentive plan. At the time, the automaker also indicated the possibility that she will receive additional compensation as part of a new long-term incentive plan. The previously announced short-term incentive plan was viewed as only a fraction of the compensation received by Akerson.
Akerson received $11.1 million compensation in 2012. He continues to serve General Motors Company (NYSE:GM) as senior adviser, and qualified to receive a pay package of as much as $4.68 million in 2014. According to the automaker, Akerson is expected to serve as senior advisor for less than one year, and his pay will be prorated.
Compensation of Mary Barra is in-line with peer group
General Motors Company (NYSE:GM) pointed out that the total compensation of Mary Barra is in line with her peer group, and it is properly weighted. GM chairman Tim Solso said, “The company’s performance will ultimately determine how much she is paid.”
The previously announced compensation of Mary Barra was criticized by several media outlets. Last week, Elizabeth MacDonald of Foxbusiness.com asked, “Why does GM think Barra’s value as its CEO is currently worth 52% less than Akerson’s?
On the other hand, Democratic Congresswoman Louise Slaughter of New York issued a statement criticizing Mary Barra’s salary. She pointed out, “salary disparity underscores need to address gender pay gap.” After General Motors Company (NYSE:GM) released the new compensation plan for Mary Barra, the lawmaker tweeted that she is happy to see that Barra is ”earning a salary equal to her male counterparts and reflecting her contributions.”
Auto industry consultant Maryann Keller commented, “The number here is a fine number and appropriate. A package that pays out based upon long-term performance is very sensible in an industry that is cyclical.”