Report: GM executives could reap big gains if IPO takes off

Ed Whitacre will step down as GM CEO and Chairman on Sept. 1

General Motors announced today that it has filed for an initial public offering of common stock. The move is expected to largely benefit GM executives if all goes right. While GM did not disclose the number of shares to be sold or the price per share, potential gains for top executives are expected to be large.

As the Detroit Free Press points out, before Ed Whitacre stepped down as CEO, he was in line for a $5.3 million stock award to be paid over a three year period. He was also on his way to qualifying for $2 million restricted stock units previously valued at $53.98. If GM shares ended up trading at $108 a share one year or two years from now, the last group of Whitacre’s shares would have doubled in value.

A GM spokesman said she did not know of the potential compensation for Whitacre or when he steps down has chairman next year. The spokesman also said that she had no clue whether GM would transfer the same compensation to new CEO Dan Akerson.

Similar stock award offers are expected to be made to 13 other GM executives.

– By: Omar Rana

Source: Free Press