GM CEO Mary Barra stated to the media that General Motors will adapt a new executive compensation system. Where the long-term executives will be compensated when the EV targets are reached. The further scope of these targets and other details are to be known once the GM’s proxy filing is released on Friday. So far it is known that the targets will include volumes manufactured in North America, including the vehicle quality and launch timing.
First reported by CNBC, GM CEO Mary Barra said that executive compensation will be tied to EV targets beginning this year. The full scope of these targets is expected to come to light during GM’s proxy filing on Friday, but for now, we know they will include volumes of EVs in North America as well as launch timing and vehicle quality. The American automaker has recently begun transitioning several of its manufacturing facilities to support expanded EV production, as it moves to increase its annual capacity to 2 million EVs in North America and China by 2025. These movements are part of the automaker’s larger overall strategy to go all-electric by 2035.
The CEO briefly spoke about the decision behind the new executive compensation terms during GM’s recent Q1 earnings call. Said, “At GM, our compensation has always been driven by the company’s success. And no one should doubt our commitment to lead in EVs or the passion our team has for that mission.”
Back in 2020, Barra made a $2 million base salary as the GM chief, plus an additional $13 million in stock awards, bringing her total compensation package to a comfortable $23.7 million. This year alone, GM has announced a new 50 GWh battery facility coming to the United States, and $7 billion in expanding US EV production. It is not even mentioning a slew of new electrified vehicles like the Chevy Equinox, Blazer, and even an AWD Corvette. Also, GM plans to steal the crown from Tesla as the top-selling EV by mid-decade. Barra said that by that point, GM expects to generate $50 billion from EV sales in North America alone.
Furthermore, there are some grandiose goals that GM is putting a lot of effort (and capital) toward, but the results have been lagging so far. In the first quarter of 2022, GM delivered an anemic 457 EVs, which included 99 of its new GMC Hummer EV pickup. Such a low number stemmed from an ongoing saga of halted Bolt EV and EUV production that has finally resumed. Also, the lack of other EV options currently for sale continues.