In December, the US Treasury granted General Motors the rights for the company to once again buy corporate jets and for its executives to fly on them, but neither those execs nor the ones at Ally Financial will get any raises this year. The automaker, worried that top talent might leave for higher-paying pastures, reportedly sought a more "market-based approach to executive compensation" for 12 of its top 25 execs. Because the federal government still has stakes in both GM and Ally, though, the companies need approval for pay raises, and they were declined. Neither company sought raises for their CEOs, and Ally's request didn't involve any additional cash compensation for the executives in question.

While the Treasury says that cash salaries for the 25 top executives at GM and Ally combined are just four percent below the median compared to similar positions, total cash compensation is 56 percent below the median. That would include GM CEO Dan Akerson (shown), who got a little more cash last year because of a compensation rearrangement speculated to potentially involve his retirement, but the overall annual pay package of $9 million hasn't changed for him since 2010 according to the Treasury.

What's more, it's said the overall compensation at both firms dropped by double-digit percentages compared to last year due to an influx of new appointments among the top 25 executives. The Treasury has said it will divest itself of all GM shares it owns by March 2014, but hasn't given a any guidance on divestiture of its Ally stock, the financial firm dealing with a much more complicated situation.


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 116 Comments
      Richard
      • 1 Year Ago
      It's amazing that a top CEO in Japan for a large company only draws $90,000 in salary. The problem in the United States is that we let 'Executive' demand and receive the salary they get today. I'm sure there are talanted individuals out there that can run GM for 1 million annual salary with a bonus package if profit is met. I guess the stock holders need to get more involved, just like the Fed did by not giving them raises. It's a step in the right direction. A few need to be terminated and I's sure the rest would fall into line. $9 million that he still wanted a raise. It's time to bring things back into reality...............
        Cayman
        • 1 Year Ago
        @Richard
        A top CEO or all top CEO's in Japan??? I find it hard to believe that all top CEO's receive an average of $90K. I can believe that a top CEO only draws that amount, some US CEO's work on the cheap as well (some pull down a minimum salary of a few dollars). Also, you need to look at really what these guys make (bonuses, stock, options, etc) and not what their salary is.
      mdmichel8888
      • 1 Year Ago
      workers don't get raises .....why should the CEO's
      stroup1
      • 1 Year Ago
      They should have to pay former employees who had money in personal savings plans for retirement that the company had invested in their stock. The money in the savings plans was money these people put in from their paychecks every week and the company invested it supposedly. I was one of them and over a period of 33 years I put in over $80,000 of my take home pay. I lost this money in their bancrupcy and there is no way I can ever recover it. I don't invest in stocks but I was trying to have money saved for my retirement and the federal government should never have allowed the savings accounts to be lost. At one time my account was worth over $120,000 but I don't care about that loss only the actual money I had put in and was stolen from me as it also was stolen from many workers who had saved in the PSP.
      johnhen56
      • 1 Year Ago
      If someone wants to:: "leave for greener pastures?"........."Don't let the door hit you in the @@@ on the way through it" or IE "you dont like what you earn here there's the door GOOD BYE!""
      Will
      • 1 Year Ago
      Poor guy has to live on only 9 million? I'll swap with him.
      edith
      • 1 Year Ago
      9 mil really for doing what? I wish I have been unemployed for a year and a half and can make it on 200 bucks a week with a kid to feed and no jet I gotta take the bus Oh well such is life I guess
      iamannatude
      • 1 Year Ago
      Bet the people on the assembly line at the plant didn't get a raise
      suegus1
      • 1 Year Ago
      In a crisis, one would hope for a vigorious Federal government and not when with its fingers crossed in hopes that the a problem will go away on its own accord. A government should act fast toward resolving the crisis and then get out.
        jase.s
        • 1 Year Ago
        @suegus1
        The Government will \"get out\" when GM pays back all the money they borrowed from the taxpayers.
      Macon
      • 1 Year Ago
      Wait a minute........... They were denied a pay raise yet Congress granted themselves one in the late night of last year while millions of Americans were asleep and wouldn't find out?????? OMG WHAT IS WRONG WITH THESE PEOPLE?? I'm not saying this CEO deserves a pay increase, my point is that one governing body denies someone yet they approve it for themselves. I AM SICK OF GOVT POLITICS !!! Both sides need to be scrapped. Nothing will change until WE THE PEOPLE force a change.
      barbeo4
      • 1 Year Ago
      funny you complain about GM ceo making 9 million .....how about walmarts CEO making 20 mill. and tax payers paid 3.5 BILLION for those under paid parttime workers at walmart for healthcare????????
        posthuf
        • 1 Year Ago
        @barbeo4
        Government doesn't own WalMart. And how would the CEO making $0 instead of $20m pay that "3.5 BILLION?" You sound like another uncaring clod who doesn't care if the poor are more poor, just so long as the rich are less rich! Government DOES won GM. Anybody who didn't see this coming when ob bought gm was blind then and is more blind today.
      josmachnik3
      • 1 Year Ago
      When is enough enough, how much can you spend? I call 4 or 5 homes, 4 or 6 cars and three or four boats a form of greed when you consider what the taxpayers had to give up so they could have there perks. SICK.
      barbeo4
      • 1 Year Ago
      just so you know avg life of a GM worker after they retire is 6 years American medical journal
    • Load More Comments