UPDATED: 4/22/16 3:14 pm ET – adds details
DETROIT — General Motors awarded CEO Mary Barra a compensation package valued at $28.6 million in 2015 — a 77 percent jump from a year earlier, partly because of a one-time stock-option grant, GM said today in a regulatory filing.
Barra’s compensation included a $1.75 million base salary; $3 million in short-term incentives; and $12 million in performance-based stock grants, which will vest over three years only if the company meets certain goals, such as an unspecified operating profit and global market share targets.
In addition, GM last summer granted Barra $11.2 million “Driving Stockholder Value” stock-option grant, which the company said was a retention tool and aimed at boosting the stock price through executive incentives to hit business-performance targets. Sixty percent of those options will vest starting in 2018 only if GM meets or exceeds the median stock performance of a group of global automotive companies.
The options have a strike price of $31.32. GM’s shares closed Thursday at $32.66.
GM said Barra’s “realized” compensation — the amount she received in salary and incentive payments, along with the stock awards that vested during 2015 — was $7.3 million, up from $4.5 million in 2014. The company said that figure reflects a “more accurate view of the compensation Ms. Barra actually received.”
GM posted record sales in 2015 and $10.8 billion in pretax operating profit, the highest level since at least before the company’s 2009 bankruptcy. Its operating margin also was a record since bankruptcy of 7.1 percent, vs. 4.2 percent in 2014, when GM’s bottom line suffered from a record year of more than 30 million recalls.
Ford Motor Co. Mark Fields’ compensation for 2015 totaled $18.6 million, Ford said last month.
In February, Fiat Chrysler Automobiles told the U.S. Securities and Exchange Commission that CEO Sergio Marchionne’s total compensation was an estimated $73.6 million, including the value of the stock awards when they vested. Marchionne has not yet cashed them out and their value fluctuates over time.
Marchionne received $11.3 million in realized compensation last year. But FCA’s annual report to the SEC does not calculate the value of those awards in the same format as GM because it is a foreign company in terms of financial regulation.
Meanwhile, among other top GM executives, President Dan Ammann was awarded $11.5 million in total compensation for 2015, the filing shows. CFO Chuck Stevens was awarded $7.9 million and global product chief Mark Reuss’ package totaled $9.9 million. A significant portion of each of their pay packages included the one-time stock-option grants, most of which will vest only if GM’s stock price rises beyond the average of its peers.
Reuters and Philip Nussel contributed to this report.