GM will start tying executive compensation to electric vehicle targets

Basic Motors Chairwoman and Main Govt Officer Mary Barra speaks through a conference hosted by U.S. President Joe Biden with non-public sector CEOs to explore the Establish Back again Much better agenda at the White Residence in Washington, U.S., January 26, 2022.

Kevin Lamarque | Reuters

DETROIT – General Motors will begin tying a “important aspect” of its lengthy-term executive payment with the company’s electric car objectives, CEO Mary Barra reported Tuesday.

Setting up this yr, Barra mentioned the payment targets will include things like volumes of EVs in North The us as properly as start timing and high-quality for this sort of vehicles.

GM designs to maximize its manufacturing of electric powered automobiles to 2 million in North The united states and China by 2025, as it moves to solely promote EVs by 2035. The firm has also claimed it plans to turn into the major-providing automaker of EVs, surpassing Tesla, by mid-decade. By then, Barra on Tuesday explained GM expects to make $50 billion from EVs in North The usa.

“At GM, our payment has generally been pushed by the firm’s achievements. And no a single need to question our determination to direct in EVs or the passion our crew has for that mission,” Barra stated in the course of the company’s very first-quarter earnings simply call.

The Detroit automaker has faced improved tension from Wall Road to changeover to electric motor vehicles in the wake of marketplace leader Tesla’s increase to develop into the top-valued automaker at a market cap of a lot more than $900 billion.

Barra explained the new compensation benchmarks are intended to underscore the firm’s dedication to EVs. Even more details about the EV payment targets are predicted in the company’s future proxy filing, which Barra explained will be filed Friday.

In 2020, Barra’s payment package deal was $23.7 million, which includes a base wage of about $2 million and stock awards of $13 million.