GM and GMAC’s second-highest tier of executives limited to salaries of $500,000

Article by Christian A., on August 26, 2010

According to Treasury Department guidelines announced last week, General Motors Co. and GMAC's second-highest tier of executives are limited to salaries of $500,000 and are prohibited from receiving bonuses unrelated to performance.

Kenneth Feinberg, Treasury's special master for executive compensation, set these limits in order to let executives focus on long-term gains and financial stability rather than short-term growth.

Previously, Feinberg had set limits for the top 25 executives at GM, GMAC, Chrysler Group and Chrysler Financial.

The limits that are next to be imposed will apply to the next 75 highest-paid executives. In addition, at least 50 percent of each second-tier executive's total compensation must be held for at least three years.

In most cases, executives' cash salary will be limited to 45 percent of the total. The Treasury states that any cash incentives will be delivered over two years, eliminating large lump-sum cash bonuses.

The compensation committees of these four firms, under rules set by the government, identified about 12 executives who qualified as exceptions to the $500,000 limit.

Topics: gm, gmac

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries