Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

GM bonuses to exceed 50% of some salaries

By Aaron Smith, staff writer


NEW YORK (CNNMoney) -- Less than two years after getting a U.S. government bailout, General Motors is handing out bonuses that, in some cases, could exceed 50% of workers' salaries.

"To give GM's 26,000 salaried employees a stake in the overall performance of the company, their compensation is based in part on the performance of the company and on their individual performance," said GM, in a prepared statement.

GM (GM) said that for 96% of its U.S. salaried workforce, bonuses will fall within the range of 4% to 16% of the employees' base pay.

Fewer than 1% of the automaker's salaried employees will receive bonuses of at least 50% of their salaries, the automaker said.

GM is expected to reveal more details about the bonuses when it releases its yearly earnings later this month. At the time, the automaker is expected to announce bonuses for hourly employees, as well as salaried workers.

"In any given year, an employees' variable pay can be zero, below the target, or above the target, depending on the performance of the company and the individual employee," said GM. "Compensation for GM's 100 most highly paid executives is based on parameters approved by the U.S. Treasury."

GM received a bailout of $50 billion by the U.S. government, starting in early 2009, a plan that included giving the government a 61% stake in the company.

The government recouped much of this money when it sold GM shares during the automaker's successful initial public offering in November. But about $27 billion in bailout funds remain unpaid. To top of page

Index Last Change % Change
Dow 16,058.35 -469.68 -2.84%
Nasdaq 4,636.11 -140.40 -2.94%
S&P 500 1,913.85 -58.33 -2.96%
Treasuries 2.17 -0.03 -1.27%
Data as of 11:01pm ET
Company Price Change % Change
Bank of America Corp... 15.58 -0.71 -4.36%
Apple Inc 107.72 -5.04 -4.47%
General Electric Co 23.88 -0.94 -3.79%
Ford Motor Co 13.72 -0.15 -1.08%
Microsoft Corp 41.82 -1.70 -3.91%
Data as of 4:00pm ET
Sponsors

Sections

McDonald's has been testing an all-day breakfast menu in several markets for months. Now it has said when the change will go nationwide: October 6. More

Iran could be pumping more than four million barrels of oil a day by the end of 2016, the country's oil minister tells CNN in an exclusive interview. More

How do you run a successful crowdfunding campaign? Indiegogo's CEO Slava Rubin offers his top tips and mistakes to avoid. More

Here's what you need to earn to afford a home in the 27 biggest metro areas in the country, according to HSH.com. More