GM's CEO Mary Barra was in the spotlight for allegedly making less than her predecessor, but she may actually make more than him by almost 60 percent.
Last week, General Motors announced that their CEO would be long-term staffer Mary Barra. Barra has been a part of the company since the 1980s, but was in the midst of a compensation controversy when details about her salary came to light.
Her base salary is expected to be $1.6 million, lower than her predecessor Dan Akerson's $1.7 million take. However, with stock options Barra's salary is estimated to be $4.4 million, Motor Trend reports. At first, people voiced their dissent on GM's decision because it appeared that Barra would be making less than her predecessor, arguing that women continue to get paid less for doing similar jobs than their men counterparts.
Recently, GM released a statement about these alleged reports, calling them "immature and flawed."
"This represents two of her three compensation components. Specific long-term incentive compensation numbers will be included in the company's April 2014 proxy filing, which likely will dispel any notion of pay inequity," the statement reads.
If Barra is approved for the long-term compensation plan, she would be awarded $10 million, which is nearly 60 percent higher than Akerson's salary — her package would only be smaller than the CEOs from Ford's, who is making $21 million per year and, VW's, according to CBS.
"As a new CEO, Mary's total compensation is in line with her peer group and properly weighted so that most is at-risk," GM chairman Tim Solso added in the statement.
Some might continue to believe that the lower base salary still puts Barra at a disadvantage from Akerson, but Akerson "had prior CEO experience and was [the] chairman of the board of directors." Upon retiring from his position as CEO, he will continue to be a consultant for the board.
GM's decision to be transparent with the American public may answer some of its questions, but these types of concerns typically occur in-house. Companies that wish to make announcements like these can do so through the use of HR software solutions. This program can help executives and HR departments to share any type of company-wide update.