GM CEO Mary Barra Made $28.6 Million Last Year     

GM CEO GM companies used car ignition switch

Talk about a paycheck – even if some of it is just on paper for now.

General Motors awarded CEO Mary Barra a compensation package valued at $28.6 million in 2015. The number is a 77 percent jump from a year earlier, partly because of a one-time stock-option grant, according to GM’s regulatory filing.

So here’s how it breaks down for all the number crunchers out there.

Barra’s compensation included a $1.75 million base salary, $3 million in short-term incentives, and $12 million in performance-based stock grants. Those grants will vest over three years only if the company meets certain goals, such as an unspecified operating profit and global market share targets.

GM also granted Barra a $11.2 million “Driving Stockholder Value” stock-option grant last summer. GM called it a retention tool and aimed at boosting the stock price through executive incentives to hit business-performance targets. Sixty percent of those options will vest starting in 2018 only if GM meets or exceeds the median stock performance of a group of global automotive companies.

As for what Barra actually took home, her “realized” compensation in 2015 was $7.3 million, up quite a bit from $4.5 million in 2014. GM says the number more accurately reflects the money she actually received in salary and incentive payments, along with the stock awards that vested during 2015. 

GM posted record sales in 2015 and $10.8 billion in pretax operating profit, the highest level since at least before the company’s 2009 bankruptcy. Its operating margin also was a record since bankruptcy of 7.1 percent, vs. 4.2 percent in 2014, when GM’s bottom line suffered from a record year of more than 30 million recalls.

So how does Barra’s compensation stack up to those leading the charge at the other Detroit 3?

Ford CEO Mark Fields’ compensation for 2015 totaled $18.6 million.

In February, Fiat Chrysler Automobiles told the U.S. Securities and Exchange Commission that CEO Sergio Marchionne’s total compensation was an estimated $73.6 million, including the value of the stock awards when they vested. Marchionne has not yet cashed them out and their value fluctuates over time. His actual take home was $11.3 million in “realized” compensation. FCA’s annual report to the SEC does not calculate the value of those awards in the same format as GM because it is a foreign company in terms of financial regulation.

Meanwhile, among other top GM executives, President Dan Ammann was awarded $11.5 million in total compensation for 2015. CFO Chuck Stevens was awarded $7.9 million and global product chief Mark Reuss’ package totaled $9.9 million.

A significant portion of each of their pay packages included the one-time stock-option grants, most of which will vest only if GM’s stock price rises beyond the average of its peers.

Photo Credit: General Motors
Copyright ©2018 Car Pro. All rights reserved.                                                      Team Access          Privacy          Terms of Service          Technical Support

Log in with your credentials


Forgot your details?

Create Account