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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGM’s First Female CEO Will Make Half Of What Her Predecessor Made
They have to take the cost of that broken glass ceiling out of her check.
http://thinkprogress.org/economy/2014/02/04/3243951/mary-barra-pay-gap/
In December, General Motors (GM) made headlines for picking Mary Barra to replace Dan Akerson as its new CEO. That meant she would not only be the first woman at the helm of the carmaker, but any global carmaker.
But while she may have shattered that glass ceiling, her pay is another story. Looking at the companys filings with the Securities and Exchange Commission, Elizabeth MacDonald notes that Barra will be paid $4.4 million in total compensation, which includes a base salary of $1.6 million. Akerson, on the other hand, made an estimated $9 million, with a $1.7 million base salary and $7.3 million in stock. That means Barra will make less than half of what he made. In fact, Akerson will continue to make more as her, as GM will pay him $4.68 million as an outside senior adviser.
Worse, Barra comes to the job with an outsized amount of previous experience. Shes been with the company since 1980 and was most recently serving as senior vice president of global product development. Akerson, on the other hand, came into the role without a background running a car company, previously serving as a managing director of private equity firm The Carlyle Group, although he has been on GMs board since 2009.
A GM spokesman told MacDonald that Barras compensation could increase after shareholders vote in June on her long-term incentive compensation.
....more at link
FBaggins
(26,731 posts)I can't remember the last time a new ceo at my company made anywhere near what the outgoing one made.
chowder66
(9,067 posts)I understand the pay gap issue as it relates to men and women; I personally have experienced it...however, should the CEO before her have been making so much?
These massive packages/benefits/salaries are too large in the first place and it's unfortunate that her predecessor's compensation wasn't reined in before she came on board.
lumberjack_jeff
(33,224 posts)He was appointed by the Treasury, which at the time of his appointment owned 61% of GM. That share has now been bought back from the government.
I'm not a big cheerleader for CEO's, but her predecessor did a good job and arguably saved the company.
chowder66
(9,067 posts)but boy thatsalotta dough!
hfojvt
(37,573 posts)Demand MORE pay for CEOs, right fu$%ing now!!! Everybody to the barricades!!!
exboyfil
(17,862 posts)Once her long term compensation is calculated, she probably will be close to the former CEO's final year. As far as executive salaries go, this is probably in the ball park of being fair. Look at the salaries of some of the other CEOs
http://www.aflcio.org/Corporate-Watch/CEO-Pay-and-You/100-Highest-Paid-CEOs
http://www.theguardian.com/business/2013/oct/22/best-paid-chief-executives-america
I like the fact that Barra came up in the company and is not a hired gun. More CEOs should be hired in this way. She is also an engineer which is a plus in my mind (even though she did get a business degree). She has been groomed for a top position for some time. I am sure she will do a great job. Her dad was a die maker for Pontiac.
NightWatcher
(39,343 posts)BECAUSE IT PAYS HER 4.4 MILLION FUCKING DOLLARS!
I'll be sure to light a candle for her when I get my disability this month.