In order to prevent the loss of talented people from General Motors Co., CEO Dan Akerson is asking for "some relaxation" in the limitations on executive pay enforced by the U.S. government. At the Economic Club of Washington, D.C., Akerson said that GM has to be competitive and keep the talent that it has. He revealed that GM is “starting to lose them now."
Akerson said that he is set to meet with the U.S. Treasury's special paymaster to talk about the matter of executive compensation.
According to a Detroit News report, GM salaried employees will not get salary raises in 2011. The newspaper said that GM's salary freeze is being maintained to "lead by example," as GM works to rebuild its balance sheet after its restructuring.
Akerson has led GM through its initial public offering in November that lowered the U.S. Treasury's stake from 61% to about 33%.
GM’s IPO arrived just a little more than one year after it had gone through a restructuring in bankruptcy supported by the Obama administration.
Akerson’s speech had singled out several major points that GM and its bankers told investors during the run-up to the record $23.1 billion share offering. [via autonews - sub. required]