General Motors is proposing to pay chief executive Dan Akerson around $11.1 million this year, according to a document obtained by Bloomberg News. The document shows that GM is proposing to pay its top 25 executives around $82 million in compensation. A person privy with the matter identified Akerson as the highest-paid executive in GM.
Akerson received $7.7 million in compensation for 2011, when his target pay was around $9 million. GM’s former lending unit, Ally Financial Inc., is proposing to pay CEO Michael Carpenter around $9.6 million, according to another document obtained by Bloomberg. Compensations for executives at seven bailed-out companies – GM, Ally, American International Group Inc., Bank of America Corp., Citigroup Inc., Chrysler Group and Chrysler Financial Corp. – were scrutinized and limited by the U.S. Treasury starting in 2009.
Except for GM and Ally, the other companies have already left the government's Troubled Asset Relief Program and are now unrestricted in terms of executive compensations. Greg Martin, a spokesman for GM, told Bloomberg that GM complies with all TARP restrictions and special master decisions while focusing on driving solid business results for the company.
He added that GM has provided the House Oversight Committee with the information it has requested and will continue to cooperate with it. The House Oversight Committee is holding a hearing Tuesday on executive pay at companies which pay has been supervised by the Treasury.
Akerson’s compensation is considerably lesser than that of Alan Mulally, chief executive of Ford Motor Co. Mullaly was paid $29.5 million in 2011. Weeks before Ford disclosed Mulally's full-year compensation, the carmaker gave him $58.3 million in stock as a reward for the carmaker's turnaround.
In January, GM disclosed that it will invest $1.5 billion in facilities in North America in 2013. As part of this commitment, GM will be investing $600 million in the Fairfax Assembly and Stamping Plant to construct a new 450,000 square-foot paint shop as well as to install a new stamping press. Other upgrades are also expected. This investment – expected to be one of the biggest that GM has ever made on a plant -- builds on almost $2 billion invested in Fairfax in the past decade.
GM will commence construction of the 3.2-million-square-foot plant later this year. The construction is likely to take around two years to complete, and as a result it will expand the footprint of the plant by approximately 15 percent to around 3.7 million square feet. Since the construction will not affect the vehicle production schedules, the plant will still have its three shifts of workers on the job.