GM Execs Get Substantial Raises, No Bonuses
Mar. 22, 1994
DETROIT (AP) _ General Motors Corp. President Jack Smith nearly doubled his salary to $1.37 million last year, but neither he nor four other top executives received bonuses despite the automaker's comeback, a proxy statement showed Monday.
GM's board of directors decided not to grant bonuses ''until the executive group achieves sustained profitability,'' according to the statement.
The No. 1 automaker posted $2.5 billion in profits in 1993 after years of staggering losses.
The top GM executives also got stock options that could be worth millions in the next two years if the stock price remains high.
Of the top five executives, only Smith earned more than $1 million in salary. His $1.37 million pay was up from $748,000 in 1992.
GM Executive Vice President William Hoglund earned $775,000, up from $592,000 the year before.
The three remaining executive vice presidents more than doubled their salaries, but that was because they were promoted near the end of 1992, GM spokeswoman Toni Simonetti said.
General Counsel Harry Pearce and Louis Hughes, president of GM Europe, each earned $688,000, up from $328,000 and $304,000 respectively. Chief Financial Officer G. Richard Wagoner Jr. nearly tripled his salary to $675,000 from $239,000.
GM's executive team also was awarded stock options, half of which can be exercised one year and the full amount in two years.
Smith was given the option of buying 120,000 shares of common stock at $33.88 a share. The closing price of stock Monday was $59.62 1/2 .
Hoglund was given an option on 70,000 shares, Pearce was given an option on 25,000 shares and Hughes and Wagoner got options for 50,000 shares.
The Securities and Exchange Commission requires public disclosure of compensation for a public company's top five executives.