GM CEO Base Salary Falls to $950,000

The United States Treasury announced today that 175 executives working at seven companies that have received state loans will receive pay reductions, including General Motors' CEO Fritz Henderson whose salary will be cut by 25 percent. Henderson will now receive a base salary of $950,000, as compared to $1.3 million in the original payment schedule.

Additionally, Henderson will get $4.2 million in stock salary and long-term restricted stock, Autonews reported citing a statement of the United States Treasury.

For the sake of comparison, Sergio Marchionne, the new Chrysler CEO, gets no salary from the US-based manufacturer.

General Motors has already issues a statement, explaining that such a move is mandatory for the US manufacturer to return to profitability. The company confirmed that GM's board will be compensated depending on the success and the recovery the manufacturer will post in the next years.

"Following a collaborative and constructive review of GM’s executive compensation, GM is adopting the changes to its executive compensation as outlined by the special master. GM is more heavily weighting total compensation to non-cash compensation that is directly tied to the company’s performance, consistent with GM’s long-standing compensation philosophy," General Motors said in the statement.

"Along with restoring GM to profitability, a key priority is responsible stewardship of the public investment in our company and rapid repayment of that investment. As GM continues to redefine its business, we are focused on delivering value to our customers and stockholders, and our senior leadership will ultimately be compensated based on our success in doing so."