The U.S. Treasury Department said today that it had frozen the total compensation for General Motors CEO Dan Akerson and reduced compensation of several other top GM executives.
The Treasury Department can limit executive compensation at GM, AIG and Ally Financial because it owns stock in all three companies as a result of bailing them out in the 2008 financial crisis. The U.S. government still owns about 26.5% of GM stock.
AIG still owes taxpayers around $50 billion. General Motors owes about $25 billion. Ally Financial about $12 billion.
Akerson in 2011 received $9 million in total compensation, including a $1.7-million salary, $2 million in long-term restricted stock and $5.3 million in stock salary.
In 2012, his salary will remain unchanged, and the rest of compensation will come in the form of $7.3 million in performance-based stock salary with shares that are redeemable on an annual basis for three years.