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GM will begin tying management compensation to targets for electric cars

General Motors President and CEO Mary Barra speaks during a meeting hosted by US President Joe Biden with CEOs in the private sector to discuss the Build Back Better agenda at the White House in Washington, USA, on January 26, 2022.

Kevin Lamarque | Reuters

DETROIT – General Motors will begin to tie up a “significant portion” of its long-term management compensation to the company’s goals for electric cars, CEO Mary Barra said Tuesday.

As of this year, Barra said the compensation targets will include quantities of electric cars in North America as well as launch time and quality for such vehicles.

“At GM, our compensation has always been driven by the company’s success. And no one should doubt our commitment to lead in electric cars or the passion our team has for that mission,” Barra said during the company’s first-quarter earnings call.

The Detroit automaker has come under increasing pressure from Wall Street to switch to electric vehicles in the wake of industry leader Tesla’s rise to become the highest-valued automaker with a market value of more than $ 900 billion.

Barra said the new compensation benchmarks are intended to underscore the company’s commitment to electric cars. Further details on the EV compensation targets are expected in the company’s upcoming proxy filing, which Barra said will be filed on Friday.

In 2020, Barra’s compensation package was $ 23.7 million, including a base salary of around $ 2 million and share allotments of $ 13 million.

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