Factbox: IPO could lead to payday for GM employees

NEW YORK (BestGrowthStock) – General Motors Co filed for an initial public offering of stock on Wednesday, clearing a key hurdle just over a year after its bankruptcy.

While the filing could go a long way to repaying taxpayers for a controversial bailout, it has also been eagerly anticipated by the company’s executives and employees, as many have taken on extra work for less pay, lost stock options in the bankruptcy, and are eagerly awaiting the return of stock-based compensation.

The following are some facts about compensation to executives and employees in GM’s offering documents:

* In 2009, during GM’s bankruptcy, most directors took a salary of $1 for the year.

* Up to and during GM’s bankruptcy in 2009, non-employee directors of GM were paid a total of $139,252 in fees and other compensation. Post-bankruptcy GM’s fees and compensation for its new non-employee board directors rose to a total of $1,081,313 for 2009.

* The cost of providing each GM director with free company vehicles in 2009 was between $1,905 and $6,984 up to and during GM’s bankruptcy. After GM’s bankruptcy, the cost of the free vehicles for GM directors ranged from $1,045 to $2,091.

* As part of its agreement with the government, General Motors agreed to align the compensation of its U.S. employees with that paid to U.S. employees of foreign-owned car companies, like Toyota, by December 31, 2009. The move had the effect of lowering the overall compensation paid to GM workers.

* In its IPO filing, GM complained it was forced to reduce executive salaries, under TARP Special Master Kenneth Feinberg to no more than $500,000 per year, except in special circumstances. GM complained the pay cuts could “materially adversely affect” its ability to attract and retain employees.

* GM’s pension plans are underfunded, and based on a hypothetical funding valuation at June 30, 2010, the company said it may need to make significant contributions to its U.S. pension plans in 2014 and beyond in order to meet its obligations. As of, December 31, 2009, GM’s U.S. defined benefit pension plans were underfunded by $17.1 billion, while its non-U.S. defined benefit pension plans were underfunded by about $10.3 billion.

* In 2009, GM had three CEOs. Rick Wagoner’s cash salary was $1 and he earned total compensation of $2.8 million. Fritz Henderson’s cash salary was $950,000 and he earned total compensation of $4 million. Ed Whitacre, who was only CEO for a month in 2009, had a cash salary of zero and his total compensation from being a director was $181,308.

* Pre IPO about 6 million shares of restricted stock units have been awarded as part of GM’s long-term incentive plans for employees and salary stock plans as of June 30.

(Reporting by Emily Chasan; editing by Carol Bishopric)

Factbox: IPO could lead to payday for GM employees