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GM gives $6.66 million in stock to top executives

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GM gives $6.66 million in stock to top executives

July 2, 2010 - 1:06 pm ET

DETROIT (Bloomberg) -- General Motors Co. gave stock valued at $6.66 million to 14 top managers, including $1.33 million worth to CEO Ed Whitacre.

The 123,347 shares were valued at $53.98 each, a price determined by a third party, the company said today in filings with the U.S. Securities and Exchange Commission.

GM gives executives salary stock units and restricted shares to augment their compensation, which is constrained by government rules because the automaker is 61 percent owned by the U.S. Treasury Department. The company must disclose the shares it grants in filings every quarter.

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.

GM's implied equity value is about $47 billion at today's bond prices. Assuming 500 million shares, that would equate to about $94 a share. At that price, the shares granted today would be worth a total of $11.6 million.

Whitacre, whose stock would be worth about $2.31 million based on GM's bonds, also receives a $1.7 million annual cash salary.

Chief Financial Officer Chris Liddell was awarded 15,979 shares worth about $862,500 under GM's valuation and $1.5 million at market rates. Liddell receives a base salary of $750,000 a year.

Some executives sold shares back to the Detroit-based company. Managers sold 7,924 shares for a total of about $427,700, according to the filings. Vice Chairman Tom Stephens sold the most, 1,460 shares for about $78,800. Whitacre and Liddell didn't sell shares.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20100702/OEM02/100709962/1178#ixzz0sYoalxZt

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GM gives $6.66 million in stock to its top executives

CEO Whitacre gets $1.33M in shares

BY DAVID WELCH

BLOOMBERG NEWS

General Motors gave stock valued at $6.66 million to 14 top managers, including $1.33 million worth to Chairman and CEO Ed Whitacre.

The 123,347 shares were valued at $53.98 each, a price determined by a third party, the company said Friday in filings with the U.S. Securities and Exchange Commission.

GM gives executives salary stock units and restricted shares to augment their compensation, which is constrained by government rules because the automaker is 61% owned by the U.S. Treasury Department. The company must disclose the shares it grants in filings every quarter.

The company's equity should be worth $70 billion, according to a May 20 report by Eric Selle, a JPMorgan Chase 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 the new GM.

GM's implied equity value is about $47 billion at Friday's bond prices. Assuming 500 million shares, that would equate to about $94 a share. At that price, the shares granted Friday would be worth a total of $11.6 million.

Whitacre, whose stock would be worth about $2.31 million based on GM's bonds, also receives a $1.7-million annual cash salary.

Chief Financial Officer Chris Liddell was awarded 15,979 shares worth about $862,500 under GM's valuation and $1.5 million at market rates. Liddell receives a base salary of $750,000 a year.

Some executives sold shares back to the Detroit-based company. Managers sold 7,924 shares for a total of about $427,700, according to the filings. Vice Chairman Tom Stephens sold the most, 1,460 shares for about $78,800. Whitacre and Liddell didn't sell shares.

GM's predecessor entered bankruptcy on June 1, 2009, and the new company emerged in July 2009.

The carmaker reported first-quarter net income of $865 million this year, helped by higher production and smaller discounts. On May 17, Liddell called the profit a "good, useful step" toward an initial public offering.

link:

http://www.freep.com/article/20100703/BUSINESS01/7030330/1210/Business01/GM-gives-6.66-million-in-stock-to-its-top-executives

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