Mary Barra, CEO GM Getty

GM CEO's Pay Slips a Second Year After Board Set Tougher Targets

About 89% of Barra’s compensation is determined by whether the company meets performance targets.

General Motors Co. paid CEO Mary Barra and other top management less last year after the board set tougher goals that were unmet despite record profit.

Barra, 56, earned almost $22 million in 2017, down about $624,000 from a year earlier, according to GM’s annual proxy statement.

The CEO’s non-equity incentive plan paid out about $1.8 million less than 2016, and she also was given about $2.3 million less in stock awards.

The drop in non-equity pay was largely due to GM’s board setting more difficult targets. Chief among them was automotive free cash flow, which fell by about $3 billion last year to $5.2 billion, driven by lower automotive earnings and spending on sales incentives.

GM reported record adjusted earnings of $6.62 a share last year.

About 89% of Barra’s compensation is determined by whether the company meets performance targets.

In 2016, GM exceeded goals that determine executive pay by about 69%. Last year, the company was at about 100%, spokesman Tom Henderson said.

Executives weren’t the only ones to see a small cut in compensation. The profit-sharing checks paid out to hourly workers represented by the United Auto Workers union were $11,750 for 2017, down slightly from $12,000 for 2016.

 By David Welch

 

TAGS: Talent
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