Newly appointed CEO of GM Ed Whitacre, will be compensated to the tune of $1.7 million per year in cash, and a stock package payable over three years beginning in 2012 that is valued at $5.3 million. Fritz Henderson, the ousted CEO that Whitacre was appointed to replace, will be retained as a consultant to Whitacre. The figure that Whitacre is set to receive is greater than what Henderson was to make before GM”s executive salaries were scrutinized by U.S. Pay Czar Kenneth Feinberg. Before being officially named CEO, Whitacre was earning a salary of $350,000 as chairman.
GM rehired Henderson yesterday as consultant on a month-to-month basis with with the job expected to end before 2011, at a rate of $59,090. Henderson will offer counsel specifically with regard to international operations. For that fee Henderson is expected to put in about 20 hours per month.
Henderson was being paid $950,000 per year in cash and received a $4.2 million stock package as CEO, after Feinberg stuck his hand in and chopped the cash portion of Henderson”s salary from $1.3 million. It is said by many that GM”s pay restrictions imposed by the government have greatly hindered their search for an outside GM.
– By: Stephen Calogera
Source: Automotive News (Subscription Required)