News - General Motors

No gain, more pain for GM's top brass

In the money: GM chief Rick Wagoner.

GM heads wind back their bonuses as the world's biggest car-maker cuts exec salaries

General Motors logo5 May 2006


GENERAL MOTORS chief executive Rick Wagoner received a financial compensation package worth $US5.5 million ($A7.3 million) in 2005 – almost half the $US10.1 million in total compensation he received in 2004, according to a proxy statement the world’s biggest auto brand filed with the US Securities and Exchange Comission last week.

Associated Press reports that Wagoner’s salary remained at $2.2 million, which has remained steady since 2003, and received no bonus for the year (compared to a $2.5 million bonus in 2004).

He was also granted 400,000 stock options with a current value of $2.8 million. In 2004, his 400,000 stock options had a value of $5.1 million.

Other senior executives had their compensation cut last year. Head of global product development Bob Lutz received a package worth $US3 million last year – down from $US6.5 million in 2004 – while former chief financial officer John Devine earned $US3.9 million in 2005, well down on his 2004 package valued at $US6.4 million.

Neither Mr Lutz nor Mr Devine received bonuses last year.

GM reported a loss in 2005 of $10.57 billion. Senior executive salaries will be reduced further this year, following a GM board decision in February.

According to Automotive News, Mr Wagoner’s base salary will be cut in half and those of Mr Lutz, Mr Devine (who remains a vice-chairman) and GM’s new CFO Fritz Henderson will be cut 30 per cent.

Share with your friends

General Motors articles

Motor industry news

GoAutoNews is Australia’s number one automotive industry journal covering the latest news, future and new model releases, market trends, industry personnel movements, and international events.