According to a report from the Detroit News, General Motors has not yet decided what it will pay new CEO Mary Barra and president Dan Amman.
Barra, GM’s former vice president of global product development, global purchasing and supply chain, was named GM’s new CEO effective Jan. 15 earlier this week, after GM CEO Dan Akerson announced his early retirement.
Barra will more than certainly earn more than she did at her former position in 2012, which totaled $4.9 million, made up of a $750,000 salary and $3.9 million in awarded stock. She could reportedly be in place to earn even more than Dan Akerson, who earned $11.1 million in 2012, as GM no longer has pay restrictions on its executives’ salaries due to the end of the government bailout.
The Federal Government had put pay restrictions in place for GM executives as a condition for providing $50 billion in bailout compensation. According to the Detroit News, GM and analysts say that lifting the pay restriction will enable the company to recruit the best talent it can.
Akerson told reporters on Tuesday now that the company has no restrictions on pay, it will change its compensation for executives to be “more performance oriented.”
“You’ve got to walk the talk,” Akerson said. “So a good portion of the executive compensation here, on the order of a quarter, will be tied to quality. And not quality as we we define it, but by how the external view.”
The plan would award the executives who help deliver quality work in their field, and would leave compensation out for those who did not. It has not yet been approved.