GM, Treasury Still in Talks over Whitacre Pay Package

WASHINGTON - The Treasury Department and General Motors Co. are in talks to finalize the pay package for GM's new CEO, Edward Whitacre Jr., The Detroit News reported.

Whitacre was named chief executive by the GM board Jan. 25, after the company ended its search for a permanent CEO less than two months after starting it.

More than two weeks after starting, Whitacre's salary and pay package hasn't been finalized.

Since GM is among the companies that have received exceptional assistance under the $700 billion Troubled Asset Relief Program, the Treasury Department's special master, Ken Feinberg, must approve of the pay for its top 25 executives.

A Treasury spokeswoman, Meg Reilly, said Monday that "discussions are ongoing. We expect to reach a decision soon, but have no update at this time."

The Treasury Department, which owns 61 percent of GM and invested $50 billion in the automaker, named Whitacre to chair GM's board in July.

GM also said it was still in talks with Treasury.

Separately, GM submitted by late January its pay proposals for its other top 25 executives as Treasury begins its review of 2010 pay.

Feinberg had ordered a 25 percent cut in the salary for GM's then-CEO Fritz Henderson, to $950,000, in October.

GM's pay for its top 25 execs fell by 31 percent for salaries and 20.4 percent in total compensation, Feinberg ruled in October. Just one other executive in GM's top 25, beyond the CEO, was to earn more than $500,000 in cash.