General Motors Co. is reshaping executive incentive packages based on earnings, global market share and quality.
GM began making the changes after the U.S. government sold its remaining stake in the automaker, according to its proxy filing today with the U.S. Securities and Exchange Commission. The U.S. Treasury exited GM in December. The Detroit-based company signaled in February that a new incentive plan was in the works when it gave greater detail about what new Chief Executive Officer Mary Barra could make this year under her proposed pay package.
“We believe that linking pay to the achievement of both short- and long-term goals is an important cornerstone of employee engagement,” GM said in the proxy.
A focus on product quality has gained new momentum at GM as the company plays defense over its slowness to recall 2.59 million cars with potentially faulty ignition switches.
In February, GM said Barra’s $14.4 million pay package includes $10 million in long-term compensation that is subject to approval of a new incentive plan by GM stockholders at the automaker’s annual meeting in June. GM had said full details of the plan would be released in the company’s April proxy.
The company also said today that United Auto Workers union Vice President Joe Ashton has been nominated to the company’s board of directors.