General Motors CEO Ed Whitacre has been saying for quite some time that he would like to see the company traded publicly by Q4 2010, and now he may have even more incentive to get that done. Twelve top execs at the company are to receive share equivalents worth a total of $24.5 million. 184,255 salary stock units and 71,155 restricted stock units were issued that executives can exercise should they hit certain performance incentives. Each unit represents one share of stock.
“This is probably 100 percent related to their run up to an IPO,” said Joe Phillippi, president of AutoTrends Consulting. “It’s probably one more step in preparation to go public.” Company and U.S. Treasury officials have been meeting with investment bankers to select one to handle the IPO, according to those close to the matter.
At current estimated value, Whitacre”s 24,547 salary stock units would be worth $2.36 million. Whitacre may exercise one third of his shares each year beginning March 31, 2011. He also receives a $1.7 million annual cash salary.
-By: Stephen Calogera
Source: Automotive News