GM to Pay New CEO Akerson $1.7M Cash a Year, Plus Stock
DETROIT - General Motors Co. will pay new CEO Dan Akerson $1.7 million in cash annually, plus $5.3 million in stock over the next three years, Bloomberg reported.
Akerson, 61, also will receive $2 million in restricted stock as part of the company's long-term incentive plan, Detroit-based GM said today in a regulatory filing.
Akerson, a former managing director of the Carlyle Group, took over as CEO from Ed Whitacre on Sept. 1 to give GM a longer-term executive. The automaker is planning an initial public offering to begin freeing itself from government ownership. Whitacre, 68, remains chairman through the end of the year.
“Top executives in the automotive industry aren't at the top of the compensation pyramid like they were 30 or 40 years ago,” David Cole, chairman of the Center for Automotive Research in Ann Arbor, Michigan, said in a telephone interview. “This compensation is relatively small compared to other industries. I think it's fair.”
GM, 61 percent owned by the U.S. Treasury, has had four CEOs in the past 18 months. The company received a $50 billion taxpayer bailout following its bankruptcy in June 2009.
Whitacre, who became chairman in July 2009 and CEO in December, will get $300,000 for his four remaining months on the board, according to today's filing.
Akerson's pay package matches one GM planned for Whitacre that was detailed in a Feb. 19 regulatory filing. Akerson's pay was decided by GM's board and the special master on executive compensation for the Troubled Asset Relief Program, said Noreen Pratscher, a GM spokeswoman.
GM is seeking to raise as much as $16 billion in its IPO, a person familiar with the plans said in August. That would be the second-biggest offering in U.S. history, behind Visa Inc.'s $19.7 billion share sale in March 2008.
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →