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GM reveals stock deals for senior execs

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GM reveals stock deals for senior execs

Robert Snell / The Detroit News

General Motors Co. has started to disclose how much stock senior executives have received in the new company, according to a string of filings today with the U.S. Securities and Exchange Commission.

The filings paint a fuller picture of executive compensation at GM, which went through bankruptcy last year and has received about $50 billion in bailout funds.

The filings show top executives received a mix of restricted and salary stock tied to the company's performance. The stock does not have an exercise price, however, because the automaker is technically a private company majority owned by the government. GM is preparing for an initial public offering of stock, perhaps later this year.

Cash paid to senior executives was set earlier this year by Kenneth Feinberg, the Treasury Department's special master on pay for firms that got large bailouts from the $700 billion Troubled Asset Relief Program. His guidelines resulted in fewer executives being paid cash salaries above $500,000 this year.

GM sought to pay 16 of its top 25 executives more than $500,000 each, but Feinberg approved more than $500,000 for only eight.

Cash is only one part of the executives' compensation. They also receive restricted and salary stock.

GM has repaid $6.7 billion in federal loans -- but downplayed in a controversial commercial that taxpayers are still on the hook for $43 billion in aid that was swapped for a 61 percent majority stake in GM.

GM received $50 billion in U.S. government bailout funds -- but about $43 billion of those were swapped by the government in exchange for a 61 percent majority stake in GM. The government cannot start cashing in its $43 billion investment in GM until the automaker launches an IPO.

Here is a list of executives and the total number of stock units, according to SEC filings:

• Chairman and CEO Ed Whitacre: 24,547 shares of salary stock.

• Vice Chairman Steve Girsky: 18,063 salary stock units.

• Chris Liddell, vice chairman and chief financial officer: 15,979 shares of salary stock. His compensation package totals $6.27 million, $900,000 of which is cash.

• Tom Stephens, vice chairman of global product operations: 50,521 shares of restricted and salary stock.

• Tim Lee, president of GM's international operations: 25,440 shares of restricted and salary stock.

• Nick Reilly, president of GM Europe: 31,438 shares of restricted and salary stock.

• Mark Reuss, North American president: 25,104 shares of restricted and salary stock.

• Mary Barra, vice president of global human resources: 12,957 shares of restricted and salary stock.

• Selim Bingol, vice president of communications: 258 shares of salary stock.

• Vice President and Chief Information Officer Terry Kline: 12,959 in restricted and salary stock.

• Vice President Michael Milliken, legal and general counsel: 19,142 in restricted and salary stock.

• Nick Cyprus, vice president, controller and chief accounting officer: 19,002 shares of salary stock.

Earlier this year, GM disclosed pay packages for certain top officials.

In March, GM said Girsky, who also sits on the automaker's board as a representative of the UAW, would receive a $5.4 million package. The package includes a $500,000 annual salary and $4.5 million in stock spread out over time.

In 2012, Girsky will start to receive $3 million in stock over three years. He also will receive $1.5 million in restricted stock that is tied to the company's performance.

And in February, GM said Chairman and Chief Executive Ed Whitacre Jr. would get a $9 million pay package. In 2012, Whitacre will start to accrue $5.3 million in stock over three years, including $2 million in restricted stock tied to the company's performance.

From The Detroit News: http://detnews.com/article/20100607/AUTO01/6070392/1148/auto01/GM-reveals-stock-deals-for-senior-execs#ixzz0qBwyZa8K

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GM reveals management stock awards

BY TIM HIGGINS

FREE PRESS BUSINESS WRITER

In filings with the U.S. Securities and Exchange Commission today, General Motors gave insight into what kind of stock awards its senior management has been given for post-bankruptcy work.

GM, which exited bankruptcy last summer, has been compensating executives with cash, salary stock and restricted stock.

The precise value of the stock is based on estimates because GM is not publicly traded yet.

The salary stock awarded last year that became exercisable beginning in March will be paid in cash “in an amount equal to the fair market value,” according to the filings.

Salary stock just being awarded will not be exercisable for another year. Restricted stock won’t be vested for three years, according to GM.

A previous GM filing indicated the shares had differing values. Prior to Dec 31, the units were valued at $38.87 per share. After that date, the units were valued at $53.98 per share, according to GM’s April annual report.

“It varies over time and it is based upon an independent, third-party valuation,” said Renee Rashid-Merem, a GM spokeswoman.

Included in the numerous SEC filings:

• Ed Whitacre, CEO and chairman, has received 24,547 shares of GM common stock through the salary stock plan, which will be exercisable next year.

• Tom Stephens, a vice chairman, has received 50,521 shares, some of which were exercisable beginning in March.

• Chris Liddell, vice chairman and CFO, has received 15,979 shares, which will be exercisable next March.

• Steve Girsky, a vice chairman, has received 18,063 shares, which will be exercisable next March.

• Mark Reuss, president of North America, has received 25,104 shares, some of which will be exercisable in March.

link:

http://www.freep.com/article/20100607/BUSINESS01/100607043/1331/GM-reveals-management-stock-awards

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12 GM execs get $13M in stock

Top managers share awards that depend on company's success

Robert Snell / The Detroit News

A dozen top General Motors Co. executives have been awarded company stock valued at a total of about $13 million as part of their overall pay packages, the automaker disclosed Monday.

The awards, revealed in several filings with the U.S. Securities and Exchange Commission, paint a fuller picture of executive compensation at GM, which received about $50 billion in federal bailout funds and went through bankruptcy last year.

The filings show several top executives received a mix of salary stock and restricted stock tied to the company's performance. The stock does not have an exercise price, however, because the automaker is technically a private company with the government as majority owner. GM is preparing for an initial public offering of stock, perhaps later this year.

The stock awards are not excessive, said Rebecca Lindland, director of auto industry research for IHS Global Insight.

"It's so dependent on the success of the company, so it's not as if they are getting rewarded prior to the company turning itself around," she said. "They've got to perform in order to be paid."

Cash is only one part of the executives' compensation. They also receive restricted stock -- which vests after three years and is tied to the company's performance -- and salary stock, which is payable in three annual installments.

Because GM has not issued shares of company stock, the values of the shares were determined by an independent third party. Shares granted before Dec. 31, 2009, were worth $38.87 each, while shares granted after that date were worth $53.98, according to an April SEC filing.

But the values are only a "snapshot in time" and subject to change, GM spokeswoman Renee Rashid-Merem said Monday.

The $13 million in stock split among a dozen executives is less than the $14.1 million in total compensation former CEO Rick Wagoner earned in 2007.

Cash paid to senior executives was set earlier this year by Kenneth Feinberg, the Treasury Department's special master on pay for firms that got large bailouts from the $700 billion Troubled Asset Relief Program. His guidelines resulted in fewer executives being paid cash salaries above $500,000 this year.

GM has repaid $6.7 billion in federal loans, but downplayed in a controversial commercial that taxpayers are still on the hook for $43 billion in aid that was swapped for a 61 percent majority stake in GM.

The government cannot start cashing in its $43 billion investment in GM until the automaker launches an IPO.

Earlier this year, GM disclosed pay packages for certain top officials. In March, GM said Girsky, who also sits on the automaker's board as a representative of the United Auto Workers, would receive a $5.4 million package, including a $500,000 annual salary and $4.5 million in stock spread out over time.

And in February, GM said Chairman and Chief Executive Ed Whitacre Jr. would get a $9 million pay package.

From The Detroit News: http://www.detnews.com/article/20100608/AUTO01/6080369/1148/auto01/12-GM-execs-get-$13M-in-stock#ixzz0qGQAKuC8

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GM issues shares worth $24.5 million to executives

June 8, 2010 06:01 CET

DETROIT (Bloomberg) -- General Motors Co. is giving 12 top executives share equivalents worth an estimated total of $24.5 million that could be exercised once the company goes public.

GM issued 184,255 salary stock units and 71,155 restricted stock units executives can exercise if they hit certain performance targets, the automaker said Monday in U.S. regulatory filings. Each unit represents one share of stock, and if GM stock hasn't been trading for six months, the executives will receive cash.

CEO Ed Whitacre wants GM shares to trade by the fourth quarter, and company and U.S. Treasury officials have been meeting with investment bankers in recent weeks to select one to manage the initial public offering, people familiar with the matters have said. The automaker is 61 percent owned by the United States.

“This is probably 100 percent related to their run up to an IPO,” said Joe Phillippi, president of AutoTrends Consulting. “It's probably one more step in preparation to go public.”

A stock sale may not be held until next year, CFO Chris Liddell said last month.

The company's equity should be worth $70 billion, according to a May 20 report by Eric Selle, a JPMorgan Chase & Co. debt analyst who projects a return of 47 cents on the dollar for holders of bonds issued by GM's predecessor, General Motors Corp., that will be converted to stock and warrants in new GM.

At current bond prices, GM's implied equity value is about $48 billion. Assuming 500 million shares, the value would be about $96 a share.

Whitacre's stock

At that price, Whitacre's 24,547 salary stock units would be worth $2.36 million. A third of Whitacre's shares can be exercised each year beginning March 31, 2011, the filing said. Whitacre also gets a $1.7 million annual cash salary.

Liddell gets a salary of $750,000. His first group of salary stock shares would be worth $1.53 million, based on a share price of $96. Vice Chairman Steve Girsky gets a salary of $500,000 a year. The 18,063 salary stock shares he will be issued would be worth $1.73 million at Monday's estimated value.

Read more: http://www.autonews.com/article/20100608/COPY/306089984/1178#ixzz0qGvN7tZ1

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Holy incentive Batman!

Well these guys have a lot at stake. I think this will make them work a little harder since they have a stake in this one.

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Top GM Execs Awarded Millions in Stock

Value depends on going public, estimates run to $13 million.

by Paul A. Eisenstein on Jun.07, 2010

Why is this man smiling? GM CEO Ed Whitacre stands to make millions on a new stock award.

A dozen top General Motors executives will share millions in a potential stock bonanza added to their base pay, the automaker revealed Monday in Security and Exchange Commission filings.

The stock could help sweeten things for senior GM managers, many of whom have seen their pay restricted by the Treasury Department’s special compensation master as part of the terms of the $50 billion bailout that pulled the automaker out of bankruptcy last year.

While the precise value of the new shares will ultimately depend upon the success of GM’s planned Initial Public Offering, or IPO, some observers estimate the latest round of incentives will be worth $13 million or more.

The awards were disclosed as part of a required filing with the U.S. Securities and Exchange Commission. Data on corporate earnings and compensation for senior executives is part of the public record.

Stock awarded last year became exercisable as of March 2010, and the company’s filing said it will be paid in cash “in an amount equal to the fair market value,” though exactly what that value will be cannot be determined until the IPO.

GM placed a value of preliminary value of $38.87 on the shares issued in 2009, and $53.98 on those being awarded this year, but those are considered only temporary valuations that will almost certainly change over time.

The White House has been pressuring GM to take itself public again as soon as possible, hoping to recover as much as possible of its investment. But CEO Ed Whitacre has cautioned that he will not authorize an IPO until he believes it can generate maximum value. Analysts like Joe Phillippi, of AutoTrends Consulting, do not expect that to be possible until at least 2011.

Executives receiving additional stock this year won’t be able to cash in until next year, and restricted stock options take three years to vest, according to the automaker.

The biggest payout under the salaried stock plan goes to Ed Whitacre, Jr., who now serves in the dual role of GM Chairman and Chief Executive Officer. He receives 24,547 shares. Others receiving stock

include:

Vice Chairman Tom Stephens, 50,521 shares;

Chief Financial Officer and Vice Chairman Chris Liddell, who joined GM from Microsoft this year, gets 15,979 shares;

Vice Chairman and Wall Street veteran Chris Girsky receives 18,063. A key role for Girsky will be putting together the planned GM IPO;

Mark Reuss, the president of GM’s North American operations, will get 25,104 shares.

The stock deal is ostensibly meant to help offset restrictions in salaries ordered by Kenneth Feinberg, Treasury’s special master on pay. Responding to public outcry over the lavish bonuses awarded to senior executives of company’s receiving federal bailouts – especially those in the banking and finance industry – Feinberg has sharply curbed this year’s compensation, in many cases to no more than $500,000.

GM sought to get the government overseer to push 16 of its top 25 executives above that ceiling but he approved only eight.

link:

http://www.thedetroitbureau.com/2010/06/top-gm-execs-awarded-millions-in-stock/

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