Boston, MA 02/05/2014 (wallstreetpr) – The $48.64 billion market capped General Motors Company (NYSE:GM) has come out strongly to defend its executive compensation plan for its newly appointed lady CEO Mary Barra. In the recent few weeks, the car maker has attracted major media scrutiny around the $1.6 million pay package and the attendant $2.8 million incentive plan that its CEO has signed up for. Its former CEO Mr Akerson had reported drawn close to $9 million as annual take home, leading to this controversy.
Pay Parity Being Insisted
Reputed media houses like Fox news and NGO like Think Progress have raised questions around the equality of pay for both sexes. Elizabeth McDonald from Fox News has been quoted to have commented, “why does General Motors Company think Barra’s value as its CEO is currently worth 52% less than Akerson’s?” while Think Progress has made a caustic comment stating, “while [Barra] may have shattered that glass ceiling, her pay is another story.”
General Motors Company Take
General Motors Company (NYSE:GM) has defended itself by stating that the conclusions being drawn by the media and other interested parties are “premature and flawed.” They point to the SEC filings form January of this year, in which the car maker had clearly indicated that the current compensation arrangement is exclusively short term and a long term incentive will be announced post the April 2014 general body meeting, in which the share holders of the firm are expected to first approve the CEO compensation plan.
First Family Weighs In Favour Of Pay Parity
It is interesting to note here that no less than President Obama and First Lady Michelle Obama had commented on the unequal pay for women in corporate America, even as they had congratulated General Motors Company (NYSE:GM) for breaking with the past and appointing a lady CEO in a traditionally made dominated board room in auto making companies.
General Motors Company Asks Time Till April AGM
As General Motors Company (NYSE:GM) said in its recent statement has commented that, “the salary and short-term incentives are only two of three ways Barra gets paid. Specific long-term incentive compensation numbers will be included in the company’s April 2014 proxy filing, which likely will dispel any notion of pay inequity. Stockholders at General Motors Company’s Annual Meeting must approve the long-term portion of her pay.”
