Wagoner cuts pay by 25% to aid turnaround, well kind of
[Sources: Bloomberg, Detroit Free Press, Detroit News, GM, Reuters]
According to Reuters, Wagoner earned $2.2 million in January of 2006, but in an effort to aid in GM's turnaround, his salary has been reduced to $1.65 million beginning this month. Bloomberg and the Freep go into more detail, outlining all of the General's CEO's earnings, including $765,566 in "other compensation," plus stock options and "awards" that added an additional $6.67 million to his income. Wagoner's grand total for 2006: $10.2 million.
Running over to GM's corporate website, we were able to confirm those figures to a certain degree (see pic below), with Wagoner earning $1,283,333 in salary, stock awards totaling $3,574,594, option awards to the tune of $3,095,560, pension value changes of $1,468,100, plus $769,566 in "all other compensation." All that totals up to be $10,191,153 earned by Wagoner in 2006 (not quite $10.2M, but whatev).
Now, regardless of the faulty math, the question remains, what kind of salary cut did Wagoner really end up with? According to Bloomberg, the CEO took a voluntary pay cut of 50-percent in February of 2006 (in actuality it was 42-percent) – down from $2.2 million in 2005 to $1.28 million in 2006. Now, Wagoner's salary beginning in March of this year will be $1.65 million – or a 28-percent raise.
So, at the end of the day, did Wagoner receive a pay cut from last year's earnings or 2005's? We're a little unsure ourselves, but that's what we have.
Click to enlarge or follow the GM link above under "Sources" to download the .PDF.
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