GM To Tie Exec Compensation To EV Volume And Launch Targets
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GM will tie a large percentage of its long-term executive compensation to various electric vehicle sales volumes and launch targets, company CEO Mary Barra said Tuesday.
Speaking during GM’s Q1 2022 earnings call, Barra said a “large portion,” of its executive compensation will be tied to the success of its EV model lines, CNBC reports. This will include targets for sales volumes and product launch timing, as well as vehicle quality standards.
“At GM, our compensation has always been driven by the company’s success. And no one should doubt our commitment to lead in EVs or the passion our team has for that mission,” Barra said during the conference call.
Barra said more information on these EV targets will be disclosed in the automaker’s proxy statement, which will be filed on Friday. This strategy is intended to entice executives to promote EVs and underscores the automaker’s commitment to eco-friendly mobility solutions, Barra also said.
GM said previously that it is aiming for EVs to account for 40 to 50 percent of its annual sales volume by 2030. It also plans to cease production of most gasoline and diesel passenger vehicles by 2035.
GM recently announced an expanded tech-sharing partnership with Japanese automaker Honda, which will see the two companies collaborate to develop affordable, mass-market electric vehicles. More affordable EVs like these will be important in helping GM meet its sales targets, as many EVs the market currently offers are high-end models that regular consumers cannot afford.
“This is a key step to deliver on our commitment to achieve carbon neutrality in our global products and operations by 2040 and eliminate tailpipe emissions from light duty vehicles in the U.S. by 2035,” Barra said of the Honda partnership. “By working together, we’ll put people all over the world into EVs faster than either company could achieve on its own.”
The first product in this new affordable GM-Honda EV model line will go on sale in 2027.
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*Vehicle quality standards*.
Yeah that’s rich coming from a company with no quality standards.
That’s very true.
And I have a Chevy
I bet over paid Mary Barra doesn’t follow that rule.
Her pay would be a lot less than it is now.
She needs to go.
Lookup what her pay is…
How is this birthing person still in charge of GM?
Per Barra:
“At GM, our compensation has always been driven by the company’s success…”.
If that’s the case, WHY IS SHE PAID SO MUCH when gm is not succeeding. Last year lowercase gm ceded it’s longstanding status as the bestselling US manufacturer to Japanese rival Toyota. It was a record gm had held since 1931. On their home turf gm couldn’t even best the Tokyo-based automaker whose sales were up 10 percent to 2.3 million last year. By comparison, gm’s sales declined by 13 percent to an annual total of 2.2 million.
My beef with Mary is exactly what she says. Her compensation has not been tied to success. She’s being paid exorbitantly well without commensurate success for General Motors. Barra has only continued to shrink the company which is now down to less than 15 percent market share whereas it was at 50 percent when she was hired in 1980.
Today, to obfuscate the fact that the company is still declining, closing factories, and losing market share not only to Toyota but to many other rivals, Barra and her team cherry-pick only the most lucrative markets and product categories. This keeps profits up and makes the situation look more rosy. The reality though is that gm today is a niche’ automaker building only BoF light trucks and truck variants and FWD crossovers. Although they ostensibly still build some Cadillac sedans, their volumes are very low and they are not succeeding against their competitors. Only the truck-based products and truckish CUVs succeed. A comprehensive comparison of gm to Toyota illustrates how much they’ve fallen. The latter is still a full-line automaker offering a complete range of competitive products from small to large, Corollas to Sequoias, and from low-priced C-HRs to high-priced Lexus LC convertibles. On the other hand, the General has abandoned many of the tougher categories that Toyota still operates in.
So why is Mary Barra still in charge and paid so well? Her own words suggest she shouldn’t be. And her all-EV, all the time commitment is extremely risky given that gm has not yet successfully marketed a single electric vehicle despite 26 years of trying. Instead of tying compensation to how hard the exes push EVs on a still-reluctant public, how about tying it to real metrics like sales growth, market share growth and how many vehicle categories gm successfully enters. I don’t begrudge anyone’s compensation that is helping their company to grow and win but money for nothing is just wrong.
@CI2EYE
Hear! Hear!
Mary Barra’s complete career at gm has only been associated with market share loss. She is Roger Smith with a bra!
Wow very well said.
She has not proven in any way she should receive that massive pay check.
She needs to go.
She stood in front of President Biden and accepted praise for being the Electric vehicle leader in the US. That alone tells you what kind of person she is.
I want GM to succeed but the company needs a leader and it’s NOT lower case barra…
Build a reliable quality product and stand behind it. Get the dealers in line and tie there dealership contract to top notch customer care.
They will come and GM will be proud to use upper case letters in there name.
Yes we need to get off burning fossil fuel.
But rushing into this is not going to happen.
The USA grid is running close to 90%. The grid will not be ready for the demand for 50 years.
It’s unfortunate that those pushing EVs can’t see this.
So let me get this strait, GM will invest in vehicles few want, will go bankrupt again, thousands of UAW workers will be laid off, and execs will get massive bonuses just because EV’s were pushed……
What in the royal @@@ are they thinking!!!!!
We want them. You don’t.
EVs are the future. Any company that ignores them will be left behind.
You mean like Toyota corp???? One of the few companies not going in full throttle into the EV death spiral? Let me see, they are #1 in world sales, and last year finally surpassed GM as #1 in America. Hmmmm yep, and #1 in profit as well! Ok, verdicts out. Go woke (EV’s are as woke as you get ) go broke. Can’t wait for GM’s next bankruptcy. Maybe they’ll appoint someone with vision to CEO this time.
So many naysayers again. Seems that they didn’t get sex last night…
They are still salty that a woman is CEO, it seems. Still clinging to the shame of not being asked to dance back in high school.
Hmm I must not see the comments you are referring to because I don’t see one single person who is “salty” about a women being ceo.
I got more than the man bun EV brigade 😎
So, you did get the Man Bun Brigade and a little more. Good to know.
I have reached the point where I am ignoring those naysayers. They obviously don’t drive and likely have never driven an EV. Dealers cannot keep them in the lot so the statement that no one wants them is pure bs my local Chevy dealer got a new Bolt in last Friday. I went to look at it on Monday and it was already sold and delivered I presently drive a Vilt but just ordered a 22 Bolt. EVs rock
Wow the dealer sold 1 whole EV Impressive!
Disney has gone south since Mary joined their Board of Directors !! Coincidence ??
disney going south because nazi desantis. get educated, turn on your brain to the freedom we are guarenteed in the bill of rights, not a right wing radical.
So are you claiming the bill of rights doesn’t give the Florida government the right to do what they did?
It’s about time to tie executive compensation to foreign competition pay, just like is done for hourly employees.
Then Mary Barry will take home 90 percent less that she takes now.
Although that would still be over paying her.
Noble haters all… If GM is teaming up with Honda of all car companies then EV’s are the future otherwise Honda would not waste their time in a partnership with GM! I would drive an affordable EV the hell with Gas and it’s strangle hold on us.
There won’t be any affordable EV’s. That’s why you can’t buy a battery for a 5 year old Spark EV.
Wow, I can’t believe that GM is putting all of their eggs in one basket! When the GOP takes over a lot of this woke BS will go away, people are already resisting it. We will restart domestic energy and gas and oil prices will come back down and GM won’t have to sell what most people want. Sad. GM needs new leadership!
Does anyone else find it bizarre that they are expending so much effort on products that most people don’t want?
You mean that you don’t want.
Long waiting lists, sold out cars, pending deliveries.
Yeah nobody want’s these at all.
We don’t want anything to do with gasoline based cars. Gasoline is a legacy product. It’s on the way out, and better, faster, more reliable technology is rapidly replacing it.
Can’t actually do the same job as gas or diesel vehicles. Less than 2 percent of vehicle fleet. Make it a choice that some people might take but it doesn’t need to be the only choice.
Wrong. Very wrong. There’s nothing that petrol can do that electric can’t do significantly better. From trains, to trucks, farming equipment, passenger cars, and every day tools. Already there. The only give is the charge time, with a bit of forethought though there is no problem.
I bet you live in the city. In rural areas the power infrastructure just isn’t there. Any time wasted charging represents a failure that isn’t happening with the vehicle I currently have.