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General Motors announced that CEO Mary Barra’s total compensation for 2023 decreased by 4% to $27.8 million.
The company also disclosed increases in total compensation for other executives, including President Mark Reuss and CFO Paul Jacobson.
Rationale Behind Compensation Adjustments:
The compensation committee, chaired by board member Wesley Bush, highlighted GM’s strong financial performance in 2023 and its leadership in total U.S. sales.
However, underperformance in electric vehicle (EV) production and autonomous vehicle (AV) technology impacted executive compensation, reflecting the company’s commitment to aligning rewards with performance.
Performance Evaluation and Impact on Stock Price:
GM’s proxy filing noted that deviations from transformation commitments affected the company’s stock price and executive compensation.
The compensation committee emphasized the effectiveness of incentive plans in rewarding annual and long-term performance.
While GM’s executives saw compensation adjustments, other automakers, such as Stellantis, reported significant increases in CEO compensation. Stellantis CEO Carlos Tavares received a 56% boost in total compensation, highlighting variations in compensation practices across the industry.
Response to Union Criticism:
The United Auto Workers union criticized the compensation of executives at the Detroit Three automakers, including Mary Barra.
Following contract negotiations, the union secured pay raises and wage increases for its members, addressing concerns about executive compensation disparities.
