As reported by Bloomberg on Saturday, General Motors has decided to pay its new CEO, Dan Akerson, $1.7 million per year and provide him $5.3 million worth of stock throughout the next three years as a way of securing a long-term CEO.
Akerson was appointed CEO position on September 1 and is the fourth CEO the company has had in just 18 months. Ed Whitacre, the previous CEO, is still chairman of the board and will continue until the end of 2010. Reports say GM will pay Whitacre $300,000 for him to see out his position until December.
GM is still owned partly (61 percent) by the US Treasury and is aiming to provide an initial public offering to shed some of the government ownership weight. GM is hoping the IPO will raise $16 billion, making it the second-largest IPO in US history, behind Visa Inc.'s $19.7 offering in 2008.
General Motors is also hoping Akerson will stay with the company to help it continue along the bankruptcy recovery plan and through the IPO period.