General Motors, the largest US automaker and the third biggest in the world, recently announced that its chief executive officer Mary Barra took home $16.2 million as compensation for her leadership last year.
Barra is the first female chief executive of a global automaker and for her performance in 2014 she received no less than 78 percent more money then her predecessor got in 2013. There’s a catch though, as a large portion of the money is linked to stock grants that are not yet eligible for cash out. Her fixed salary and other liquidities amounted to a total of $4.55 million, according to a GM proxy filling with the U.S. Securities and Exchange Commission. Barra took over from Dan Akerson, now 66, as chief executive officer of General Motors back in January 2014 – he received a total of $9.1 million for his 2013 performance. The Detroit-based automaker has moved on to link executive compensation more closely to the company’s performance now – as it shed the more restrictive rules set after its 2009 bankruptcy exit when the government bailed the carmaker. Barra and the rest of her top manager staff managed to secure 74 percent of the automaker’s thresholds for profit, automotive cash flow and global market share and quality.
Ford, the second largest US automaker, also had a leadership change last year, with Alan Mulally – seen crucial in orchestrating the company’s bankruptcy avoidance strategy – relinquished command to Mark Fields back in July last year. The latter took home for 2014 a total of $18.6 million, while Mulaly still received a full-year compensation of $22 million. Additionally, Fiat Chrysler Automobiles chief executive officer Sergio Marchionne got the largest compensation of all three – $38 million, mostly being awarded for his role in finalizing the merger between Fiat SpA and the former Chrysler Group LLC.