GM CEO Compensation Continues to Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Compensation Growth: GM CEO Mary Barra earned $29.9 million last year, reflecting a 1.4% increase from the previous year, with her base salary steady at $2.1 million and stock awards rising 11% to $21.6 million, indicating the company's strategy to attract top talent.
- Performance Comparison: Over the past three years, GM has significantly outperformed rivals, nearly tripling its closest competitor's value, particularly amidst volatile EV demand and uncertain trade policies, showcasing its strong market adaptability.
- Peer Compensation Analysis: Ford CEO Jim Farley's compensation also rose by 11% to $27.5 million, yet his performance only met 64% of earnings targets while facing record recalls, highlighting a disparity between executive pay and actual company performance.
- Aligning Shareholder Interests: GM has returned immense value to shareholders through tens of billions in stock buybacks, and while executive compensation may spark debate, the company's strong performance metrics and profitability provide robust justification for such pay.
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Analyst Views on GM
Wall Street analysts forecast GM stock price to rise
19 Analyst Rating
14 Buy
4 Hold
1 Sell
Moderate Buy
Current: 78.520
Low
57.00
Averages
95.06
High
122.00
Current: 78.520
Low
57.00
Averages
95.06
High
122.00
About GM
General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company's segments include GMNA, GMI and GM Financial. Its GM North America (GMNA) and GM International (GMI) segment develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company's GM Financial segment provides automotive financing and related services. The Company is also focused on investing in electric vehicles (EVs) and autonomous vehicles (Avs), software-enabled services and subscriptions and new business opportunities. The Company's portfolio includes OnStar, GM Energy, GM Insurance, GM Genuine Parts, and the GM Company Store. Its OnStar portfolio offers safety, connectivity and hands-free driver assistance technologies. Its GM Energy provides Home EV Charging, Public EV Charging, Vehicle-To-Home and Energy Storage services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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