The U.S. Treasury will enforce a pay freeze for several General Motors executives, including CEO Dan Akerson. The government can enact limits for executive compensation as part of the terms of the bailout funds given to GM and other automakers under the Troubled Asset Relief Program.
GM CEO Akerson’s 2012 salary will reportedly be unchanged from last year at a $1.7 million salary, $2 million in long-term stock, and another $5.3 million in salary stock. Akerson also will be eligible for $7.3 million in stock that can be redeemed over the next three years based on company performance.
Some GM executives will receive slight pay increases. The Treasury is enforcing a cap of the salaries of the company’s top 25 most highly paid executives. The overall amount fell by 12 percent compared to in 2011: some executives saw their pay decline, while others received increases.
The Treasury also will be enforcing executive compensation limits on Ally Financial (which was formed from GMAC, GM’s former financing arm), as well as financial company AIG. Chrysler Group also had received bailout funds, but its executive pay is not restricted by the Treasury because Chrysler has repaid its loans and “exited” TARP.