General Motors, which still is controlled by the federal government since the auto industry bailout, plans to pay its new chief executive officer, Dan Akerson, about $9 million, between salary ($1.7 million) and stock options ($7.3 million).

 

Washington’s “pay czar,” Kenneth Feinberg, approved the financial package for Akerson, GM’s fourth CEO since 2009, who will oversee the company’s transition back to private ownership through an initial public offering of stock in mid-November.

 

On the same day that the package was announced, Feinberg also announced his resignation after 14 months as the special master of pay overseeing executive compensation for GM, American International, Chrysler and Ally Financial, the financing entity of GM and Chrysler that was previously known as GMAC. Feinberg had been accused of not acting aggressively enough to curb executive pay excesses. Feinberg had previously served as the head of the September 11 Victim Compensation Fund and will now concentrate on his new job as administrator of the BP Deepwater Horizon Disaster Victim Compensation Fund.

 

Presently, the U.S. government owns about 62% of GM, after sinking $50 billion into the ailing auto manufacturer, and Canada owns about 12% as a result of its $10 billion investment.

 

Experts say it’s unlikely the U.S. Treasury will ever be fully repaid for rescuing GM.

-Noel Brinkerhoff, David Wallechinsky

 

SEC Filings List Akerson's Pay (by Christina Rogers and David Shepardson, Detroit News)

Dan Akerson to draw $9M as GM CEO (by Chrissie Thompson, Detroit Free Press)

Get Ready for the GM IPO (by Paul Ingrassia, Wall Street Journal)