GM Chief Rick Wagoner back to full salary
GM has raised the salary of its Chief Executive, Rick Wagoner, ending his self-imposed pay-cut dating back to 2006. As previously reported, Bill Ford is fighting a similar move from the management over at Ford. Wagoner's salary has been raised back to $2.2 million, a 33 percent increase, for 2008, which is the same it was back in 2005, the year before Wagoner's salary cut went into effect, GM said Thursday.
The 55-year-old executive cut his base salary by 50 percent in 2006, then made a smaller, 25 percent cut in 2007 after GM posted a $10 billion loss in an attempt to help the company in its turnaround efforts, according to The Detroit News. In 2006, Wagoner's base salary amounted to $1.3 million. Since then, he has managed to save GM $9 billion, negotiate a money-saving deal with the UAW and oversee a product revival.
GM has a long way to go, however, as 2007 saw the world's largest automaker with a near $39 billion net loss. U.S. sales last year dropped by 6 percent.
GM's board of directors decided Wagoner is eligible for another $3.5 million in incentives and shares of GM stock if targets are met. There are millions tied up in other options, common stock and stock grants due to pay out over the next five years.