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Apr-26-2008GM Nominates Coke's Isdell To Join Its Board of Directors(topic overview)
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Isdell came out of retirement in 2004 to revive the Atlanta- based soda maker's sales after consumers concerned about obesity cut back on sugar-laden drinks. He will remain chairman until Coca-Cola's annual shareholders meeting in April 2009. Wagoner in addition to his salary received stock and stock- option awards that GM valued at $6.34 million, $1.8 million from the incentive plan, $4 million in increased pension value and deferred compensation, and other pay of $697,358. [1] DETROIT (AP) — General Motors Corp. Chairman and CEO Rick Wagoner received compensation valued at $15.7 million for 2007, up 64 percent from the previous year, according to a federal regulatory filing the company made on Friday. Wagoner earned $1.56 million in salary and no bonus last year, but he received incentive awards of $1.8 million, and stock options and restricted stock valued at $11.7 million, according to the filing with the U.S. Securities and Exchange Commission. His package in 2006 was worth $9.57 million, including $1.28 million in salary, no bonus, no incentive awards, and stock options and restricted stock valued at $7.5 million.[2] General Motors Corp. Chairman and Chief Executive Rick Wagoner's 2007 compensation package was valued at roughly $14 million, a 40 percent increase from 2006, the company reported Friday. Wagoner's salary of $1.6 million last year was nearly 30 percent higher than the $1.3 million the world's largest automaker paid him in 2006.[3] DETROIT (Reuters) - General Motors Corp (GM.N: Quote, Profile, Research ) Chief Executive Rick Wagoner's salary and other compensation rose 64 percent in 2007 to about $15.7 million, mainly due to option grants, according to a proxy filed on Friday. The GM compensation committee cited significant progress over the past few years in reducing the automaker's health care cost burden, increasing growth internationally and improvements in its cars and trucks in the 2007 awards to executives.[4]
April 25 (Bloomberg) -- General Motors Corp. raised Chief Executive Officer Rick Wagoner's total compensation by 41 percent to $14.4 million in 2007, a year when the largest U.S. automaker posted a record loss and its domestic sales declined.[1]
General Motors Corp. Chairman and Chief Executive Rick Wagoner's compensation rose 18% in 2007 to $6.6 million, and the company said today it also will raise the salaries of Wagoner and other top executives this year.[5] General Motors Corp. has nominated the chief executive of Coca-Cola Co. to join its board of directors, and it released additional details on the pay increase it awarded Chief Executive Rick Wagoner for 2007, a year in which the company reported a loss of $38.7 billion.[6] Wagoner received $45,291 for personal and business use of company aircraft, $164,561 worth of security benefits and $185,472 for life insurance and death benefits, according to the filing. The company said in its filing that it had made significant progress last year in new vehicles, sales and marketing, quality, global growth and cost reductions. GM also said that Neville Isdell, the outgoing chief executive of Coca-Cola Co., would join its board of directors. Isdell, who has been CEO of Coke since 2004, is stepping down from his post effective July 1 but will remain as chairman of the Atlanta-based company's board until April 2009.[2] GM's shares fell 19 percent last year in New York Stock Exchange composite trading. They declined 73 cents to $21.38 at 4:15 p.m. today and have dropped 14 percent this year. The automaker in its filing today also proposed appointing E. Neville Isdell, 64, who is retiring as Coca-Cola Co. CEO in July, as a director, expanding its board to 14 members.[1]
Overall cash compensation for the company's top five executives rose 30 percent from 2006, GM said in a proxy statement filed with the U.S. Securities and Exchange Commission. The company also said that has nominated Coca-Cola Co. CEO Neville Isdell to join its board of directors. GM is adding a seat to the 13-member board to make room for Isdell, who is leaving his CEO post effective July 1.[3]
In its annual proxy filing with the U.S. Securities and Exchange Commission, GM said Wagoner's base salary rose to $1.56 million from $1.28 million in 2006, and the company gave him $2.56 million in stock, along with $1.8 million in long-term incentives and $697,000 in other compensation. The automaker also made an adjustment to Wagoner's retirement plan that added $4 million to its value, but the company said his future retirement benefits would decrease by a larger amount.[5] The pension value reflects a change to allow full retirement benefits at age 60 rather than 62, GM spokeswoman Julie Gibson said. His total compensation for 2006 was $US10.2 million, GM said. The automaker in March restored Wagoner's annual salary to $US2.2 million, ending a voluntary pay cut from two years earlier, and set his 2008 incentive target at $US3.52 million.[7]
Wagoner took a voluntary 50 percent pay cut in 2006, just after GM's $10 billion 2005 loss that Wagoner at the time called "unacceptable." His 2007 pay represented a less deep 25 percent cut to his 2005 base salary. Wagoner is on track to earn $2.2 million this year, the same he earned in 2002 through 2005. Henderson's 2007 salary was higher last year, while Vice Chairman Bob Lutz, the automaker's product guru, saw his compensation fall.[3] GM, which reported a record $39 billion net loss in 2007, released the figures in a proxy statement on Friday afternoon that was filed with the U.S. Securities and Exchange Commission. The automaker, which has been restructuring, reached a contract in 2007 with the United Auto Workers that has permitted buyouts for its UAW hourly workers, a second-tier wage for new hires and a plan that will push billions of health care obligations into a union-aligned trust. Wagoner had accepted a reduced base salary in 2006 and 2007 and only about 16 percent of his compensation is guaranteed. In March, GM granted Wagoner a raise to $2.2 million per year, restoring his salary to 2006 levels.[4]
"There are a lot of easier CEO jobs that pay more than GM.'' GM boosted Wagoner's compensation as he reduced annual costs by $9 billion in the past two years, persuaded more than 34,000 union workers to leave and negotiated a contract that trims pay for future workers in half.[1]
DETROIT -- General Motors Corp. Chairman and CEO Rick Wagoner's compensation package for last year is valued at $15.7 million. That's 64 percent more than 2006 when the package was worth $9.57 million.[8] Wagoner's compensation package included a $1.6 million salary, stock options and awards currently valued at $6.3 million. He received no bonus last year or in 2006.[3] GM spokeswoman Julie Gibson says much of the increase is stock incentive awards that are based on future performance. Wagoner earned $1.56 million in salary and no bonus last year, but he received $1.8 million in incentive awards and stock options valued at $11.7 million.[8]
When Ford disclosed compensation for Mulally and other executives on April 4, the UAW called it ''excessive and unjustified.'' Other Executives Vice Chairman Bob Lutz, 76, head of product development, got $US6.89 million in compensation, including $US1.28 million in salary, GM said in the filing today. That was down from $US8.44 million for the previous year. Chief operating officer Fritz Henderson, 49, received $US7.61 million in compensation, including $US1.28 million in salary, in his role as chief financial officer last year. His total was an increase from $US5.19 million for 2006. Henderson moved to his current job in March.[7] GM Vice Chairman Bob Lutz received a 2007 salary of $1.3 million, up from $1.2 million in 2006. He received cash incentive plan compensation of $1 million, according to Friday's SEC filing. He is set to receive a salary of $1.55 million in 2008.[9]
GM paid Wagoner a salary of $1.6 million in 2007, along with $1.8 million in non-equity incentive compensation and nearly $700,000 for other compensation that includes insurance benefits, security, aircraft expenses and other factors.[4] GM last month reported a $1.8 million 2008 salary and an incentive target of $2.43 million for Henderson as operations chief. GM said it will hold its annual shareholders meeting June 3 in Wilmington, Delaware.[1]
SAN FRANCISCO (Thomson Financial) - General Motors Corp. said Friday it has nominated, E. Neville Isdell, chairman and chief executive of Coca-Cola Co., to serve on its board. The Detroit automaker also scheduled its annual shareholder meeting for June 3. If Isdell is elected, he will join the board on Aug. 6.[10] Isdell will serve as Coca-Cola's chief executive until July 1 and will remain chairman until the company's annual shareholders' meeting in April 2009.[9]
The change increased the value of executive pensions. A few weeks ago, Ford Motor Co. said Chief Executive Alan Mulally received a compensation package valued at roughly $22 million in 2006, which was 24 percent less than he made in 2006. Executive Chairman Bill Ford Jr. received no compensation, adhering to a pledge he made in 2005 to forego pay until his company returns to sustained profitability. [3] Pay for Wagoner, 55, included $1.56 million in salary, GM said today in a U.S. regulatory filing. The increase was mainly because of incentive-plan payments and a boost in the value of his pension.[1] GM said in early March that it set Wagoner's 2008 base salary at $2.2 million.[9]
Wagoner's salary for 2007 was $1.6 million, up from the $1.3 million salary he received in 2006, according to the company's proxy with the Securities and Exchange Commission.[9]
Wagoner received cash incentive plan compensation of $1.8 million for 2007, and $230,688 for perquisites and benefits that include personal security.[9] GM said Wagoner's total pay figure includes the annual value of future pension benefits and incentive stock grants and options awards that may not yield payouts if certain performance criteria aren't met.[9] The Associated Press calculates total pay including executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock and options awards granted during the year.[2]
GM spokeswoman Julie Gibson said the stock options and restricted stock are based on future performance that will be paid out over three to five years. Depending on company and share performance, Wagoner may not see all the money, she said. "That's compensation that is paid out over a period of years," she said. "That is not his 2007 take-home pay."[2] The proposals include measures requiring a detailed reporting of political contributions made by the company, the support of health care reforms that include universal coverage, and a proposal by the Community of the Sisters of St. Dominic of Caldwell, N.J., that the company set goals to reduce greenhouse gas emissions. Other changes include requiring the board to adopt cumulative voting so shareholders can cast as many votes as they hold shares; allowing shareholders with 10 percent or more of GM stock to call a special shareholders' meeting; and requiring that 75 percent of future stock compensation for senior executives be performance-based.[2]
Shareholders are also seeking to win the right to call special meetings, gain more power in replacing directors, cast an advisory ballot on executive compensation and base pay more closely to performance, according to the filing.[1] John Chevedden, a Redondo Beach, Calif., shareholder activist, offered a resolution that would allow put executive compensation packages to a nonbinding vote of shareholders. He said investors who oppose to pay packages can only vote against the members of the board's compensation committee who are seeking re-election, which he called "a blunt and insufficient instrument for registering dissatisfaction."[2]
GM's board also nominated E. Neville Isdell, chairman and chief executive of Coca-Cola Co. (KO), to serve as a director. [9] Coca-Cola's E. Neville Isdell has been nominated to join as the 14th director on GM's board. He would become the third new.[6]
The auto maker has cut costs and last year reached a historic contract with the United Auto Workers that will allow it to shed billions in retiree health- care liabilities. GM has struggled to return to profitability and reported a loss in 2007 of $38.7 billion, mainly the result of a huge non-cash loss of tax credits the company had been holding on its balance sheet. [9] GM's share price has plummeted in the months since last fall's historic labor deal with the United Auto Workers, which turns over nearly $50 billion in retiree health care liabilities to the union in the form of a company funded trust.[3]
The United Auto Workers union, which last year agreed to allow lower wages for GM's future workers, didn't immediately respond to a call seeking a comment about Wagoner's 2007 pay.[1]
GM lost a record $38.7 billion last year after posting a massive tax write down last fall.[3] The loss of $38.7 billion last year was mainly because of a $39 billion charge for tax accounting.[1]
Without the charges and other one-time items, the company lost $23 million. In the filing, the company said it had changed its pension plan so executives can retire at age 60 with full benefits. [2] The calculations don't include changes in the present value of pension benefits or the company's cost of stock and options granted before 2006, and the figures can differ from the company's total.[2]
GM also gave Wagoner options on 500,000 GM shares that had a book value of $3.8 million, but whose actual value will depend on GM's share price.[5] Wagoner's total compensation was less than the $21.7 million Ford Motor Co. has reported for CEO Alan Mulally.[1] Fritz Henderson, who was promoted to president and chief operating officer in March, received compensation of about $9.3 million in 2007, up from about $5.1 million in 2006.[4] Henderson and Lutz each received bumps in salary. Both received $1.3 million, up 10 percent from 2006. In 2006, they each got salaries of $1.2 million.[3]
Henderson's compensation package was $7.6 million in 2007, compared to $5.2 million in 2006.[3] Lutz's package was $6.9 million in 2007, down from $8.4 million in 2006.[3]
Without the charges and other one-time items, the company lost $23 million.[8] Over the last three years, the company has reported losses totaling more than $50 billion.[9] "Running GM is one of the tougher CEO positions right now,'' said Mirko Mikelic, senior portfolio manager at Fifth Third Asset Management in Grand Rapids, Michigan, which holds debt issued by the automaker among $22 billion under management.[1] GM lost a record $38.7 billion in 2007, largely due to a charge for unused tax credits.[8]
GM shares were down 75 cents to $21.36 in afternoon trading Friday. Some of the increase is accounted for by changes GM made to its pension plan, allowing executives to receive their pension at age 60 rather than 62.[3] The proxy filing also lists several stockholder proposals, including that GM set specific goals for cutting greenhouse gas emissions. Other stockholder proposals concern disclosing political contributions, health care reform, executive compensation, cumulative voting and special stockholder meetings.[9] GM said eight shareholder proposals would be under consideration at the annual meeting in Wilmington, Del., on June 3.[2] Isdell will continue as Coca-Cola's CEO until July 1, and will remain chairman until the company's annual meeting in April 2009.[10]
The company's proxy filing listed 10 shareholder proposals. They include requests that the automaker give detailed disclosure on political contributions, support universal health-care reform and agree to specific greenhouse-gas reduction plans.[1] The company said it has been notified that stockholder John Lauve intends to nominate 10 candidates for election to the board. The proxy also states that Lauve has nominated candidates each year since 2000, but "has never conducted a proxy solicitation for his candidates."[9]
GM last year edged Toyota Motor Corp. as the world's largest automaker by about 3,100 vehicles on the strength of growth in emerging markets. In this year's first quarter, Toyota again moved ahead of GM, by about 160,000 units. [1] The Detroit-based automaker's U.S. sales of cars and light trucks fell 6 percent last year, more than double the industry's 2.5 percent decline.[1] GM's U.S. sales were down 11 percent amid a slump in the domestic auto market, and a handful of UAW locals are threatening strikes against the automaker.[3]
In March, Fritz Henderson, the company's finance chief, moved into the role of chief operating officer in part to give Wagoner, 55, more leeway to focus on the automaker's growth around the globe. [3] The figure was arrived at based on Wagoner's salary, all other compensation and the basis of annual grants.[4]
SOURCES
1. Bloomberg.com: Worldwide
2. The Associated Press: GM CEO's 2007 compensation worth $15.7 million
3. Wagoner's GM package valued at $14M
4. GM CEO's compensation jumps 64 percent in 2007 | Reuters
5. GM raises CEO Wagoner's compensation to $6.6 million | Freep.com | Detroit Free Press
6. Free Preview - WSJ.com
7. GM boss paid $US14.4 Million | smh.com.au
8. GM CEO Rick Wagner's 2007 compensation: $15.7M -
9. UPDATE: GM CEO Wagoners Total Compensation Up 41% From 06
10. Business finance news - currency market news - online UK currency markets - financial news - Interactive Investor
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