Feds freeze GM CEO Alan Akerson’s $1.7 million salary, limit other top exec pay in the process


General Motors — or Government Motors, depending on how clever you think you are or what line of the political divide you happen to camp out in — recently had a salary cap placed on executive compensation by the federal government, according to the Detroit Free Press.

The United States Treasury has decided to freeze CEO Dan Akerson’s salary preventing it from increasing beyond last year’s $1.7 million. Ackerson, who succeeded former GM CEO Edward Witacre in September 2010, earns a reported $9 million per year including his $1.7 million salary, $5 million in stock, and $2 million in restricted stock. In addition, the Treasury Department has frozen, or limited,  the compensation packages of around 25 of the company’s highest paid executives for 2012. Indeed, the Treasury has stated that executive pay has dropped by nearly 12 percent from 2011 to 2012.

With the federal government still owning about 26.5 percent of GM stock as a result of the government bailout back in 2008 – and GM still owing the U.S. government roughly $25 billion — the Treasury Department is exercising its power to limit executive compensation.

Not content with simply taking it on the chin, GM has voiced its concern over the recent moves by the government to curb salary spending. The American automaker warned of a significant risk of executive turnover should the federal government continue to implement salary limits, arguing that luring and maintaining top talent will prove difficult should limitations continue or increase. As it stands now, at least two top level executives have left GM since 2011.

While some will no doubt look upon the government’s involvement with great disdain, others will undoubtedly be please to see the government taking active steps to limit lavish pay packages – especially for top level executives from companies that received financial bailouts by the government. Other companies such as AIG, who still owe roughly $50 billion in taxpayer money, and Ally Financial, who still owe about $12 billion, have  also been subject to compensation limits at top levels.

So how does Dan Akerson’s pay compare to other top auto executives? Not well actually. While Akerson’s combined $9 million in earnings would be more than enough for your average Joe, it’s peanuts compared to Ford CEO Alan Mulally, who earned a cool $29.5 million last year, while Sergio Machionne, head of Chrysler and Fiat, received a combined $22.2 million from Fiat – declining payment from Chrysler, which Fiat owns a 58.5-percent stake of.


‘Diablo Immortal’ is just the beginning. Mobile games are the future

Diablo fans were furious about Diablo Immortal, but in truth, mobile games are the future. From Apple and Samsung to Bethesda and Blizzard, we’re seeing a new incentive for games that fit on your phone.

From Rolls-Royce to Lamborghini, these are the most expensive cars in the world

If you recently discovered an oil reserve in your backyard, you probably have some extra cash to spend. Look no further, because we’ve rounded up the most expensive cars in the world.

The best Nintendo Switch deals and bundles for November 2018

Looking to score Nintendo's latest hybrid console? We've smoked out the best Nintendo Switch deals right here, including discounts on stand-alone consoles as well as bundles that feature games like Fortnite and Super Smash Bros. Ultimate.
Home Theater

The best movies on Netflix in November, from 'The Witch’ to ‘Dracula’

Save yourself from hours wasted scrolling through Netflix's massive library by checking out our picks for the streamer's best movies available right now, whether you're into explosive action, witty humor, or anything else.

Study suggests autonomous cars could become red-light districts on wheels

Fully autonomous cars can change the way we commute, but they can also have a far-reaching impact on the tourism industry. Two researchers published a study that outlines how self-driving technology could create a new dimension in tourism.

VW will use Siri as the designated driver for its connected car party

Volkswagen of America added Apple's Siri to help drivers control and interact with their cars. Owners can customize voice commands to tell Siri to change access settings such as interior climate, vehicle lock status, and fuel checks.

Waymo will launch its commercial autonomous ridesharing service in December

Waymo will launch a commercial ridesharing service using self-driving cars in December, according to a new report. As previously discussed by Waymo, the service will operate in specific areas around Phoenix, Arizona.

Meet the born-again Ford Bronco that will soothe your ’90s nostalgia

Ford has confirmed it will bring the Bronco back to American showrooms in a few short years. While it's still very much a work in progress, this is what we expect from the Blue Oval's born-again off-roader.

Quick! Someone petition Ferrari to make this luscious tribute to the F40

Ferrari looks toward the future as it designs hypercars like the LaFerrari. Designer Samir Sadikhov turned his eye toward the past to create a modern interpretation of the 1987 F40 without venturing into full retro territory.

BMW’s 2020 M340i will show off mix of tech and luxury at the Los Angeles show

The 2020 3 Series represents the seventh generation of BMW's bread-and-butter luxury sedan. Where previous generations emphasized the driving experience, the 2020 3 Series focuses more on tech than ever before.

Where are you going this weekend? These 5 off-road vehicles say 'anywhere'

The body-on-frame SUV is going extinct, but there are still several options for buyers looking to skip the asphalt. To help you sort the good from the bad, we've rounded up the best off-roaders currently available.

Lime’s first carsharing service motors into Seattle this week

Lime may be better known for its app-based bike and scooter rental services, but in Seattle, Washington this week it's launching its very first carsharing service, similar to Car2go and Zipcar.

Land Rover shows its artsy side by previewing the 2020 Range Rover Evoque

Land Rover made life-sized wire sculptures to preview the 2020 Range Rover Evoque. The all-new SUV will make its debut during a private event held in London on November 22, and deliveries will begin in 2019.

These headlights have 4 color settings to help save lives under all conditions

Boslla headlights are an easy-to-install solution to achieve all-weather lighting for your vehicle. After a quick ten-minute install, these lights have up to four settings to get you through anything.