Is General Motors Well-Positioned for the Future?
T = Trends for a Stock’s Movement
General Motors designs, manufactures, and markets cars, crossovers, trucks, and automobile parts worldwide. The company markets its vehicles primarily under the Buick, Cadillac, Chevrolet, GMC, Opel, Holden, and Vauxhall brand names, as well as under the Alpheon, Jiefang, Baojun, and Wuling brand names. It sells cars and trucks to dealers for consumer retail sales as well as to fleet customers in daily rental car companies, commercial fleet customers, leasing companies, and governments.
General Motors looked to put an end to any speculation of pay inequality for new CEO Mary Barra. The Detroit-based automaker Monday announced Barra — the first female head of any major automaker — is slated to make $14.4 million in 2014. Barra’s salary is split into three categories: a salary of $1.6 million; short-term incentive compensation of $2.8 million; and long-term compensation of $10 million. The long-term portion is subject to approval of a new incentive plan by GM stockholders at the company’s annual meeting in June.
The compensation announcement comes weeks after a Securities and Exchange Commission filing outlining part of Barra’s salary and days after some media outlets pointed out that Barra would get paid 52 percent less than her male predecessor, Dan Akerson. Those reports did not include the long-term compensation. In actuality, the 52-year-old executive is set to make 60 percent more than her predecessor, who stepped down as CEO on January 15. “As a new CEO, Mary’s total compensation is in line with her peer group and properly weighted so that most is at-risk,” said GM Chair Tim Solso, in a statement. “The company’s performance will ultimately determine how much she is paid.”