GM's new chief Akerson to take home $9 mn annual compensation

General Motors, which emerged from bankruptcy in July last year, is looking at ways to bolster its business and has plans for a mammoth Initial Public Offering (IPO).

Akerson, who took over the reins of the auto maker on September 1, would take an yearly base salary of USD 1.7 million, the company said in a regulatory filing on Friday.
Further, he would receive additional compensation in the form of stocks, currently valued at USD 5.3 million. These stocks would be given to him over a period of three years, starting September 30, 2011.

According to the filing, Akerson is also entitled to be presented restricted stock units, worth USD 2 million under the car maker's long-term incentive plan.
"Akerson will not receive additional compensation for his service on the company's board of directors," it noted.

Interestingly, General Motors has already seen four chief executives in less than two years. Last year, the company decided to go for bankruptcy restructuring after it failed to cope with the global financial crisis.

General Motors continues to remain under the control of the US government, since it is yet to completely pay back billions of dollars worth taxpayers' money. The proceeds from the proposed IPO would help it to bring down the debt.
Akerson's package was finalised after discussions with special pay master Ken Feinberg, who monitors compensation practices at companies that received funds under the Troubled Asset Relief Programme (TARP).
TARP pumped in billions of dollars into various entities to help them tide over the ravaging financial turmoil in 2008-09.

General Motors said that its former CEO Edward E Whitacre Jr, who stepped down on September 1, would remain as chairman till end of 2010.
"(He would) receive director's and chairman's fees totalling USD 300,000 for the remaining four months on the board. He will not receive any additional employment related compensation from the company," the filing said.