GM will start tying executive compensation to electric vehicle targets – What We Know!

Normal Motors Chairwoman and Chief Govt Officer Mary Barra speaks throughout a gathering hosted by U.S. President Joe Biden with personal sector CEOs to debate the Construct Again Higher agenda on the White Home in Washington, U.S., January 26, 2022.

Kevin Lamarque | Reuters

DETROIT – Normal Motors will start tying a “important half” of its long-term govt compensation with the corporate’s electrical automobile objectives, CEO Mary Barra stated Tuesday.

Beginning this yr, Barra stated the compensation targets will embody volumes of EVs in North America in addition to launch timing and high quality for such automobiles.

GM plans to extend its manufacturing of electrical automobiles to 2 million in North America and China by 2025, because it strikes to solely promote EVs by 2035. The corporate has additionally stated it plans to turn out to be the top-selling automaker of EVs, surpassing Tesla, by mid-decade. By then, Barra on Tuesday stated GM expects to generate $50 billion from EVs in North America.

“At GM, our compensation has all the time been pushed by the corporate’s success. And nobody ought to doubt our dedication to steer in EVs or the eagerness our group has for that mission,” Barra stated throughout the firm’s first-quarter earnings name.

The Detroit automaker has confronted elevated strain from Wall Avenue to transition to electrical automobiles within the wake of trade chief Tesla’s rise to turn out to be the top-valued automaker at a market cap of greater than $900 billion.

Barra stated the brand new compensation benchmarks are supposed to underscore the corporate’s dedication to EVs. Additional particulars concerning the EV compensation targets are anticipated within the firm’s upcoming proxy submitting, which Barra stated will probably be filed Friday.

In 2020, Barra’s compensation bundle was $23.7 million, together with a base wage of about $2 million and inventory awards of $13 million.