Two different outlets are reporting two seemingly conflicting reports about pay at General Motors, but it's clear regardless of the details that money is in motion at The General. Ed Whitacre, Jr., who doesn't receive any pay as GM's chairman, is waiting on approval from the Treasury pay czar for a $9 million "pay package" for his recent move to CEO. The pay has been "approved 'in principle'," but we aren't sure when it's going to be paid.
Bloomberg reports that "GM said Whitacre's annual compensation will be $9 million, with a $1.7 million cash salary, $5.3 million in stock that begins paying in 2012 and $2 million in restricted stock." The Detroit News says that Whitacre will get the $1.7 million, but that the $5.3 million in stock will be paid out on a predetermined scheduled over three years starting in 2012. The $2 million in restricted stock is also reportedly performance based, but what criteria will be used to determine when the stock's released is not yet known.
Whether it's $9 million per year or $9 million over five years, we hope it's all the incentive Whitacre needs to get the RenCen ship going great guns again. Bloomberg also reports that he's unhappy with the pace of change at the company, canceling executives' meetings because they "spend too much time in such gatherings instead of getting work done." Those are the eggs being broken to make a "corporate culture based on decision-making and accountability" omelet.
There is no question, though, around Fritz Henderson's pay package: he earns $59,090 for 20 hours of work per month as a consultant. He is back in the GM family to help the company with its international operations, something he is well regarded for. It might sound like a lot, but he left with no severance last year and it's only a little less than he was being paid as CEO to do a lot more work. And if he can help GM recharge the Opel/Vauxhall franchise, who knows, he might be worth it. Hat tip to John!
[Source: The Detroit News, Bloomberg | Image: Bill Pugliano/Getty Images]