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

Article by Christian Andrei, 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:


Login or Create new account to add a comment!


Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016
Wondering what the Fantasy Gift in Neiman Marcus’ annual Christmas Book this year could be? If you are generous enough to give others or yourself this special present, then behold...
by - October 24, 2016
It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016