Compensation for GM’s Mary Barra up 77% to $28.6M – Detroit Free Press
General Motors Chairman and CEO Mary Barra’s total compensation for 2015 rose 77% to $28.6 million, the company disclosed today in an annual filing with the Securities and Exchange Commission.
Barra only received $7.3 million of the total, the majority of which is based on stock-based grants and other incentives that vest over time, but must be given a value under regulatory reporting rules.
The SEC requires all publicly traded companies to disclose compensation of its top five executives each year. All stock awards must be assigned a value even if the executive doesn’t receive any cash from them for years to come.
The primary difference in Barra’s 2015 pay package and the $16.2 million reported for 2014 was $11.1 million in option awards. The real value will depend on the future price of GM shares and the company’s performance if and when she exercises those options.
Executive pay is a sensitive issue, especially in an election year. But the industry is at or near a peak of the current economic cycle. New vehicle sales hit a record 17.5 million last year and are expected to rise again this year.
GM, like many corporations, has been trying to tie executive pay more closely to the company’s performance rather than to salaries and bonuses.
GM’s earnings, or net income, for all of 2015 was $9.7 billion, more than double the $4 million of 2014. Thursday it reported earnings for the first quarter of this year of $1.95 billion, more than doubling the year-earlier level of $945 million
Barra’s base salary increased to $1.75 million from $1.57 million in 2014. She received $3.1 million under a short-term incentive plan, and about $2.5 million from other incentive-based stock grants.
When another bundle of options are included Barra has the potential to realize $11.2 million over the next nearly five years, but they only have value to the degree GM’s stock price is above the option price of $31.32. Some of them won’t vest at all unless the company achieves certain performance targets.
Her reported compensation also includes $12,012 that reflects a change in the accounting value of her pension, and $597,118 in other compensation covering expenses such as use of corporate-owned aircraft, season tickets to athletic events and other perks.
Last month, Ford disclosed that CEO Mark Fields’ 2015 compensation was $18.6 million.
In February Fiat Chrysler Automobiles reported that CEO Sergio Marchionne’s 2015 compensation was worth $73.6 million. That included 3.95 million shares of stock valued at about $62.7 million when they vested, but may be worth more or less over time. He has not sold those shares. Marchionne received a salary of $4 million and a bonus of $6.85 million.
Dan Ammann, GM president, received compensation valued at $11.8 million. Mark Reuss, executive vice president of global product development, had compensation of $10.2 million. Chief Financial Officer Chuck Stevens’ package was worth $8.1 million and Craig Glidden, executive vice president and general counsel, received $8.4 million.
Last year was the second consecutive year GM’s executive compensation was free from government oversight.
It was also a year in which the automaker resolved most of the legal and regulatory issues arising from its ignition-switch crisis involving the recall of about 2.5 million small cars built between 2003 and 2007.
General Motors offered nearly $595 million to surviving families of those killed and to 275 people injured in crashes that an independent compensation fund determined were caused by defective ignition switches in small cars built in the middle of last decade.
In September, GM agreed to pay $900 million to settle a federal criminal probe into the ignition switch crisis.
Friday’s SEC filing also disclosed that GM will hold its annual shareholders meeting June 7 at the Renaissance Center beginning at 9:30 am.
In addition to electing 11 current members of the board of directors and newly nominated Jane Mendillo, shareholders will vote on whether they approve or disapprove the compensation of top executives outlined here.
They also will vote to ratify or reject the board’s selection of Deloitte & Touche as GM’s independent auditor. Finally, there is a proposal from Holy Land Principles, a Washington, D.C.-based group that asks that GM use fair employment practices in its Israeli and its occupied territories and identify and train under-represented minority residents.
The board urges shareholders to reject that proposal on the grounds that the company already committed to providing fair employment throughout its global operations.
Contact Greg Gardner: 313-222-8762 or ggardner. Follow him on Twitter @GregGardner12