GM CEO Mary Barra to Earn More than Predecessor
Earlier this week, General Motors announced new CEO Mary Barra's compensation for 2014. She is expected to earn up to $14.4 million, about 60 percent more than Dan Akerman, her predecessor. The pay increase is also three times what she earned last year. According to GM Chairman Tim Solso, Barra's pay is right on track with her position. "As a new CEO, Mary's total compensation is in line with her peer group and properly weighted so that most is at-risk. The company's performance will ultimately determine how much she is paid." Going along with this, GM said earlier this week that $10 million in long-term compensation will be awarded to Barra, depending on the company's performance. Last month, the company announced that Barra would be given a cash salary of $1.6 million, along with short-term incentive compensation, and an undisclosed long-term compensation that will be announced in April. When Barra originally stepped up as CEO, she was only going to make $4.4 million for 2014, which prompted articles about gender discrimination in the workforce, as she would be making less than half of what Akerson made. Fox Business published an article entitled "The White House’s misstep on GM’s pay gap," citing President Obama's statement that "women make up about half our workforce, but they still make 77 cents for every dollar a man earns. That is wrong, and in 2014, it's an embarrassment." Although this could be seen as gender bias, it seems not all the information was taken into account. General Motors had previously mentioned that Barra would be earning $4.4 million in cash and stock, but GM didn't include the $10 million long-term compensation in that overall number. Source: The Detroit News, Reuters
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