General Motors' Barra will earn much more than predecessor

Tuesday 11 February 2014 12.19
General Motors' new CEO to earn 60% more than her predecessor
General Motors' new CEO to earn 60% more than her predecessor

The new General Motors boss, Mary Barra, will earn a total pay package of $14.4m this year, 60% more than her male predecessor, the car maker said last night.

US media reports last week said Barra would only be paid $4.4m, less than half of former chief executive Dan Akerson, who had pocketed $9m in 2013 and stepped down in January.

But Barra, the first woman to head a global car maker, is slated to receive $14.4m for 2014, dependent on the company's performance, GM said.

GM said it was releasing details of her pay package now "to correct misperceptions".

The compensation package breaks down to salary of $1.6m; short-term incentive compensation of $2.8m and long-term compensation of $10m.

"As a new CEO, Mary's total compensation is in line with her peer group and properly weighted so that most is at-risk," said GM chairman Tim Solso.

"The company's performance will ultimately determine how much she is paid," he added.

The long-term compensation is subject to the approval of a new incentive plan by GM stockholders at the company's annual meeting in June.