facebook
twitter
rss
account
search
search
 

GM restores merit pay for some executives

Dec. 30, 2009 at 2:46 PM   |   Comments

| License Photo
DETROIT, Dec. 30 (UPI) -- General Motors Co. said it would reinstate merit pay for salaried employees except for top executives whose salary is set by the U.S. Treasury Department.

"The good news is the company is now stable enough and back to normal enough that we can do this," company spokesman Tom Wilkinson said.

GM filed for bankruptcy early this summer and emerged with about $50 billion in federal funds to help it redefine itself as a smaller, leaner company. With the status of having received extraordinary help from the government, the Treasury's paymaster, Kenneth Feinberg, has say over pay for the top 100 GM executives.

Feinberg has ruled that GM limit cash payments to its top 25 executives at $500,000. The next 75 top executives can receive 50 percent of their pay in cash, the Treasury's paymaster said, The Detroit News reported Wednesday.

In September, GM restored pay cuts to salaried workers it imposed in May.

Pay cuts and the lack of merit pay, however, run the risk of "brain drain and losing institutional knowledge," said auto industry analyst Joe Phillippi of AutoTrends Consulting Inc.

© 2009 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Russian bank boss feeling sanctions pain Russian bank boss feeling sanctions pain
2
Army deploying JLENS radar system to help protect Washington, D.C. Army deploying JLENS radar system to help protect Washington, D.C.
3
New Navy sub ready for outfitting, testing New Navy sub ready for outfitting, testing
4
EIA: Russia diversifying energy production EIA: Russia diversifying energy production
5
No means yes for Scotland, energy companies say No means yes for Scotland, energy companies say
Trending News
Video
x
Feedback