Published February 25, 2013
General Motors (GM) and its former finance company, Ally Financial, are again seeking large pay packages for their CEOs and other top executives though the companies have not fully repaid their taxpayer bailouts, according to documents obtained by FOX Business on Monday.
The companies are seeking approval for cash and stock compensation from the Treasury Department’s acting pay czar, Patricia Geoghegan, who is reviewing the proposals.
According to the documents, GM is requesting $11 million for CEO Daniel Akerson. Ally wants $9.6 million for its CEO, Michael Carpenter, as well as $8 million for the Thomas Marano, the CEO of its mortgage subsidiary, Rescap, which is currently in bankruptcy.
Pay packages for GM and Ally have been criticized by Christy Romero, the special inspector general of the TARP bailouts of banks and auto companies, as “excessive.” Her January report on the issue is here
Taxpayers have recovered only about half their $49.5 billion investment in GM and a third from Ally, which got $17 billion.
Geoghegan has previously approved multimillion-dollar pay plans for top GM and Ally executives as necessary “to remain competitive” with the pay of top executives at other major companies and to assure taxpayers are repaid.
But she has said she has “limited excessive compensation” and has worked to shift more pay to stock rather than cash.
Geoghegan and Romero are scheduled to testify on executive pay at bailed-out companies before a House oversight subcommittee on Tuesday.
"As a general matter, the Office of Special Master does not comment on individual proposals,” a Treasury official said. “But I would note that just because a company makes a particular proposal does not mean it will ultimately be approved."
A spokesperson for GM declined to comment on its executive pay requests, but he added, “Overall, General Motors complies with all TARP restrictions and Special Master's decisions while we focus on driving solid business results for the company.”
A spokesperson for Ally echoed GM’s comments, saying that Ally’s executive compensation “is in line with all TARP restrictions and Special Master determinations.”
“Ally is focused on strengthening its leading auto services and direct banking franchises, while also executing on a number of transformative strategic actions that will best position the company to repay the remaining Treasury investment,” she added. She declined further comment.