Stock and Options Sale
Mary Barra, General Motors’ Chief Executive Officer, sold approximately 40% of her personal company stock and options in August. The total value of these transactions amounted to approximately $35.4 million. This occurred against the backdrop of her total income of $29.5 million for the past year.
Transaction Details
The sales included various stocks and options. Barra sold 297,000 shares at an average price of $58.24, equivalent to approximately $17.3 million. She also exercised and sold 235,000 stock options with a strike price of $39, receiving about $4.5 million. Another 375,024 options were exercised at a price of $35.49 per share, totaling $8.5 million. Additionally, she sold 87,839 shares from an annuity trust at $58.13, receiving approximately $5.1 million.
Mary Barra Was Paid 310 Times More Than The Average GM Worker And Still Got A Raise
A filing with the U.S. Securities and Exchange Commission confirmed that the stock options originated from Barra’s compensation in early 2020, as well as shares accumulated by her from 2011 to 2024.
Stock Sale Safeguards
It is important to note that Barra herself did not manually sell all these shares and cash options. Instead, GM uses an algorithm that automatically sells shares of certain executives when they reach a predetermined price. The goal is to prevent accusations of insider trading if executives have information that has not yet become public.
GM spokesperson Jim Cain stated that the majority of Barra’s compensation is tied to the company’s performance. Approximately 92% of her pay depends on productivity and measurable goals, while in 2024 alone, stock and performance-based rewards made up 76% of the total package. Her base salary has remained unchanged at $2.1 million since 2017.
Future Compensation Growth
Barra’s compensation will soon increase. In June, GM’s board of directors agreed to increase her short-term and long-term compensation by 7.7%, aligning with the strategy of rewarding and motivating performance and offering market-competitive pay.
These actions take place within the context of GM’s overall strategy for incentivizing management, particularly after a period of transformation and investment in electric vehicles. The stock sales may also reflect personal financial decisions rather than a change in confidence in the company’s future, considering that automated systems prevent potential conflicts of interest.