$7.7 Million in Compensation Not Enough for Taxpayer Rescued GM CEO

General Motors, the world’s largest automaker, has an issue with some of the rules of the Obama administration’s taxpayer funded bailout that saved the company three years ago.

CEO Dan Akerson was paid$7.7 million in 2011. Apparently that wasn’t enough as the company wanted to pay him more, but couldn’t due to rules imposed by the government.

Even though GM made record-breaking profits in 2011, the government still holds about one-third of the company’s stock, so many of the bailout rules on compensation still apply.

The automaker said that “compensation restraints imposed” by the government are limiting GM’s ability to retain talent, noting that Akerman’s salary is less than that of corporate chiefs at comparable companies. Ford CEO Allan Mulally made nearly $30 million in 2011.

The U.S. still owns 500 million shares of GM and needs to make $25.5 billion when it sells those shares to recoup its investment.

Meanwhile automaker Chrysler has paid back most of its loans from the government, but the Treasury Department is claiming a $1.3 billion loss on the $12.5 billion loan. CEO Sergio Marchionne has turned down a salary two years in a row.

The Treasury announced earlier this month that it’s freezing executive pay for GM, AIG and Ally Financial at 2011 levels.

All three companies are still repaying government funds.


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