GM execs receive $24.5M in company shares
General Motors is still 61 percent owned by the federal government, but the Detroit automaker recently handed out $24.5 million in company shares to its top executives.
Further signaling a pending initial public offering, General Motors has issued $24.5 million worth of company shares to its top executives. GM - now 61 percent owned by the federal government - hopes to issue an IPO by the fourth quarter of 2010.
According to Bloomberg, GM issued 184,255 units of salary stock and 71,155 units of restricted stock to its top 12 executives. Valued at $24.5 million, the executives can exercise the stocks if they reach certain performance targets, or if GM's stock hasn't been trading for six months.
Given that six-month timeframe, it appears as though GM is on track for its fourth quarter IPO. "This is probably 100 percent related to their run up to an IPO," Joe Phillippi, president of AutoTrends Consulting, said. "It's probably one more step in preparation to go public."
GM's top executive, Ed Whitacre, received 24,547 salary stocks, valued at about $2.36 million. Whitacre can exercise as much as a third of those holdings beginning March 31, 2011. Whitacre's stock payouts are on top of his $1.7 million cash salary.
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