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The Associated Press reports that having received a $50 billion bailout in corporate welfare from the U.S. government, General Motors Corporation (GM) is giving its new CEO Daniel Akerson a $9-million pay package, the same deal received by his predecessor Edward Whitacre. Akerson is the fourth CEO in less than two years at Government Motors, which is 60.8% owned by the U.S. government. Whitacre was CEO for eight months, and GM has indicated that he will receive an additional $300,000 as Chairman through the end of this year when Akerson assumes that role as well.
As the article notes:
“GM’s SEC filing said that Akerson agreed to the pay package after the government’s pay czar approved it Wednesday. Pay czar Kenneth Feinberg stepped down on Friday and was replaced by Treasury Department lawyer Patricia Geoghegan. The pay czar is responsible for setting pay guidelines for top executives at the four companies still getting exceptional assistance from the government’s $700 billion bailout fund.
“In addition to GM, those companies are American International Group, Chrysler Group LLC and Ally Financial Inc., the financing arm for GM and Chrysler.
“The U.S. government got its stake in GM after giving the Detroit auto giant a $50 billion bailout to live through bankruptcy protection last year. GM has repaid $6.7 billion, and the government hopes to get the rest of its money back through the common-stock sale.
“GM itself also plans to sell preferred shares to raise capital and pay off debt.”