GM CEO's 2008 compensation valued at $14.9 million

DETROIT: His company lost $30.9 billion last year and it is relying on government loans to stay in business, yet General Motors Corp. CEO Rick Wagoner received a pay package worth $14.9 million in 2008.

But don't get too angry just yet. Roughly $11.9 million of Wagoner's compensation was in stock and options that have plummeted to $682,000 in value as GM's shares have dropped below $2.

The troubled automaker, which has lost $82 billion over the last three years, disclosed the figures in its annual report filed Thursday with the Securities and Exchange Commission.

GM also disclosed Thursday that its auditors have serious doubts about its ability to keep operating and it may have to seek bankruptcy protection if it can't execute its turnaround plan.

Wagoner's total compensation last year was 5.5 percent less than the $15.7 million he got in 2007.

He received no cash incentive compensation last year, but his salary increased 35 percent from $1.6 million in 2007 because it was restored to its level before 2006, when ��X"agreed to reduce his salary for two years as part of the company's restructuring efforts.

This year, Wagoner has agreed to accept a salary of $1 as part of GM's request for government help. The Detroit-based company has received $13.4 billion in federal loans and is seeking up to $30 billion as it tries to weather the worst auto sales downturn in 27 years.

Wagoner, 55, received $2.1 million in salary last year, $836,000 in other compensation, and stock and options that the company valued at $11.9 million when they were granted in March 2008.



But 1 million options that had been valued at more than $7.1 million are now worthless because GM shares are trading below $2, far less than the $23.13 price at which Wagoner could exercise the options to buy GM shares. Other shares granted as part of long-term incentive programs lost most of their value.

GM's stock price plunged 87 percent in 2008 from its level of $24.89 at the end of 2007. In midday trading Thursday, the shares fell 38 cents, or 17.4 percent, to $1.82.

Wagoner's other compensation included $160,000 for personal use of corporate aircraft, $270,000 for personal security, $11,500 for use of company vehicles, and $12,000 for financial and estate planning.