Pay Limited for GMAC Executives
GMAC Inc., which lost $10.4 billion last year, will pay its chief executive $9 million in all-stock compensation this year and limit the pay of its top 25 executives to no more than $500,000 in cash, The Detroit News reported.
GMAC CEO Michael Carpenter will not able to cash in the $9 million in stock until the company repays its government loans.
GMAC has received $17.2 billion in government support and the U.S. Treasury owns a 56 percent stake in the company.
Kenneth Feinberg, the Treasury Department's special master for compensation, has been working to approve the pay packages for the top 25 executives at companies that have received exceptional government assistance: GMAC, General Motors Co., Chrysler Group LLC, Chrysler Financial LLC and AIG Corp.
Meg Reilly, a spokeswoman for the Treasury Department, said Feinberg "worked with (GMAC) to determine a pay package that strikes the right balance between the need to protect taxpayer investments and reward performance."
Carpenter, a GMAC board member, became CEO in November, and earned $802,000 in 2009 with $119,000 in cash.
Feinberg last month approved a $9 million compensation package for GM CEO Edward Whitacre Jr.
GMAC saw some pay proposals rejected by Feinberg in 2009.
GMAC's salaries fell by 50 percent, and total compensation by 86 percent. At GMAC, 85 percent of compensation was in stock and 15 percent in cash for the top 25 executives last year.
Just two of the top 25 made more than $500,000 in cash in 2009, a spokeswoman told The Detroit News.
More Industry
Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →