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GM CFO Salary Exceeds Government Limit

General Motors will have a new CFO starting January 1, 2010, so financial issues needed to be worked out by the end of this year. GM’s new chief financial officer will have a salary of $750,000 a year and will get up to another $5.45 million worth of stock starting 2012 if GM successfully sells shares to the public.

The amount is in contradiction with the laws, as it exceeds the limits imposed by the US government to all companies which received government aid. These issues were dealt with, as GM managed to work out an exception for its future CFO, Chris Liddell.

If Liddell manages to reach his objectives and get his $5.45 million in shares, his compensation package will exceed that from Microsoft Corp. Liddell, who is 51 years old, is about to leave his job as CFO for the Microsoft Corporation on December 31, where he used to earn $2.4 million a year.

Current CEO Ed Whitacre Jr does not earn a salary, but gets $350,000 annually as he is a member of the board. Frederick Henderson, Whitacre’s predecessor who was fired earlier this month, received a compensation package of nearly $5.5 million, including a cash salary of $950,000, under Feinberg's pay rules.

In order to get out of the financial mess GM received $52 billion from the government. Most of this amount has been converted into equity. Due to the financial aid, the base pay of General Motors' top executives is capped at $500,000. Most of the compensation of GM officials will be paid in company stock that cannot be redeemed until 2011.
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