Mary Barra Received 310 Times the Salary of the Average GM Employee and Still Received a Pay Increase | Carscoops

      In contrast to 2023, when her pay decreased by 4%, Barra achieved her performance goals last year and received a raise.

      GM’s Mary Barra earned $29.5 million in 2024 after meeting her performance targets.

      Ford CEO Jim Farley’s compensation decreased due to not meeting quality goals.

      Carlos Tavares of Stellantis resigned in 2024 but still received $24 million in compensation.

      In the 2011 film Margin Call, which is loosely inspired by the events leading up to the 2008 financial crisis and is definitely worth a watch if you haven't seen it, Jeremy Irons’ character makes a notable statement in a boardroom: “There are three ways to make money in business: be first, be smarter, or cheat.”

      Mary Barra, GM’s CEO, did not reach her position by taking shortcuts. As the first woman to manage one of Detroit's Big Three automakers, her ascent was not merely about breaking barriers for the sake of appearance; it was focused on delivering results. There are no allegations of cheating, and she’s not just fortunate. By exclusion, we can conclude she is the one who is smarter.

      She definitely did something well last year to earn $29.5 million, a 6% increase from 2023. According to Indeed, the estimated median employee salary at GM in the same year was $95,111, meaning Barra made approximately 310 times more than the average employee.

      This figure was revealed in GM’s annual executive compensation report filed with the SEC last Friday, indicating that Barra received a raise for meeting various performance targets and contributing to the company’s record profits.

      Barra’s performance improved, and consequently, her compensation increased, making her the highest-paid CEO among Detroit's Big Three. As reported by the Detroit Free Press, her pay had dropped by 4% in 2023 to a mere $27.8 million compared to the previous year due to GM not achieving its shareholder value targets.

      Analyzing the Numbers

      The compensation of the 63-year-old is broken down into four components: a $2.1 million salary, unchanged since 2017; $19.5 million in stock awards from record financial performance in 2024; $6.6 million in incentive pay; and $1.2 million in other payments, which include benefits, savings plans, insurance, and company vehicles.

      GM Compensation Committee Chair Wesley Bush explained in a letter to shareholders that the compensation program significantly contributed to GM’s record profits: “Disciplined execution in our core internal combustion engine business while demonstrating the effectiveness of our strategic investments in electric vehicles and software capabilities,” he stated. “Investors have noticed our recent performance, boosting our stock price by 50% in 2024, outperforming our competitors.”

      However, Bush cautioned shareholders that complacency is not an option moving forward.

      “While we’ve had a successful year at General Motors, we’d like to reiterate something our chair and CEO, Mary Barra, often tells her team: ‘Don’t mistake progress for winning,’ ” he added. “Your Compensation Committee understands that more work remains and believes our shareholders will greatly benefit from that effort.”

      Different CEOs, Different Results

      In contrast to Barra, Ford’s CEO Jim Farley saw his 2024 compensation decrease by 6% to $24.8 million as he did not meet critical quality improvement targets. This was evident even to casual observers, as Ford faced numerous recalls once again. On the positive side, their recall situation improved compared to the last three years, where they topped the list, as Tesla and Stellantis performed even worse.

      One might feel sympathy for Farley, especially considering that Carlos Tavares, who stepped down last December after failing to meet Stellantis’ objectives, received over $24 million.

      Granted, this amount was a significant drop from the $39.5 million he received in 2023, roughly 518 times the average Stellantis employee's annual salary, but it was comparable to Farley’s earnings. Moreover, it ensures he won’t need food assistance while searching for a new job. Although the group reported a net profit of $5.8 billion in 2024, it also had a net loss of $133 million in the second half, which likely displeased shareholders.