Quick to rebut the influx of criticism of underpaying a female CEO being fired its way by commentators and politicians, GM released the compensation figures for its current CEO Mary Barra a few months early. And the numbers are up from a previously released $4.4 million, to a handsome $14.4 million. To put in perspective, her predecessor, Dan Akerson, received a measly $9 million last year.
Before getting too excited, we must understand the breakdown of the numbers. The compensation package includes a salary of $1.6 million, short-term stock incentives of $2.8 million, and long-term compensation of $10 million, which will likely be a measure of the brands performance over her tenure. Those numbers are the same as before, except for that $10 million cherry on top of her salary sundae.
Still, the number are nothing to scoff at. If all goes well, Barra will likely make somewhere in the region of 60% more than Akerson, who, having retired in January this year, will still be earning a totality of $4.675 million from a combined salary and stock-incentives. Chump change, right? For him, absolutely.
Following the release of Barra’s figures, GM announced it will share the compensation details of its five-highest ranking executives come April this year. Investors can still have their say when the GM annual meeting rolls around in June.
Save the date, and be sure to check in for the full release of the facts and figures come June.