Recently about 26,000 GM employees received their performance bonuses and 47,500 hourly workers will receive on Friday 2nd March profit-sharing of $7,000.
Because of the company’s overall performance the amount offered for 2011 is less than the one in 2010. The hourly workers will receive a total of $332.5 million in profit-sharing and the total for both groups is around $500 million.
The bonus is offered according to the level of position and personal performance of each worker, judged by the supervisor that is why it can vary from worker to worker. GM, which received $50 billion loan in 2009 to restructure, is continually growing and investing in a stronger line of vehicles. The U.S. Treasury restricts compensation for the automaker’s most senior executives until the government sells its GM stake, now about 26%.
“It is important we attract and retain top talent for the organization,” said GM spokeswoman Lynda Messina. The program also drives accountability, she said.
GM reported record earnings of $7.6 billion in 2011, dampened by losses in Europe and South America. This year the employees received only 86% of the final figure since GM didn’t manage to reach all of its company performance targets. In 2011 the company received 145%.