No gain, more pain for GM's top brass

GENERAL MOTORS chief executive Rick Wagoner received a financial compensation package worth $US5.5 million ($A7.3 million) in 2005 – almost half the $US10.1 million in total compensation he received in 2004, according to a proxy statement the world’s biggest auto brand filed with the US Securities and Exchange Comission last week.

Associated Press reports that Wagoner’s salary remained at $2.2 million, which has remained steady since 2003, and received no bonus for the year (compared to a $2.5 million bonus in 2004).

He was also granted 400,000 stock options with a current value of $2.8 million. In 2004, his 400,000 stock options had a value of $5.1 million.

Other senior executives had their compensation cut last year. Head of global product development Bob Lutz received a package worth $US3 million last year – down from $US6.5 million in 2004 – while former chief financial officer John Devine earned $US3.9 million in 2005, well down on his 2004 package valued at $US6.4 million.

Neither Mr Lutz nor Mr Devine received bonuses last year.

GM reported a loss in 2005 of $10.57 billion. Senior executive salaries will be reduced further this year, following a GM board decision in February.

According to Automotive News, Mr Wagoner’s base salary will be cut in half and those of Mr Lutz, Mr Devine (who remains a vice-chairman) and GM’s new CFO Fritz Henderson will be cut 30 per cent.