Kiwi's pay packet nearly $9m for General Motors role

JOHN SELKIRK

HIGH FLIER: Chris Liddell is one of New Zealand's most successful business exports

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Kiwi Chris Liddell will get a pay package worth nearly $9 million as the new chief financial officer of American car giant General Motors.

Mr Liddell would be paid a salary of US$750,000 (NZ$1.06m) next year, and get up to another US$5.45m in stock starting in 2012 if GM successfully sold shares to the public, the company said in a government filing.

The package exceeds the limits imposed on companies that have received United States Government aid, but an exemption was worked out with government pay tsar Kenneth Feinberg, the company said.

The Treasury Department confirmed the outlines of Mr Liddell's pay package.

It will exceed what he got at Microsoft when accounting for his stock awards.

His pay package at the software giant was about US$2.4m. Mr Liddell, 51, will leave his job as Microsoft's CFO on Friday and join GM next year.

He is seen as a possible candidate for GM's next chief executive.

GM's current CEO Ed Whitacre Jr is not earning a salary, but he receives a US$350,000 annual stipend as a board member.

His predecessor Frederick "Fritz" Henderson, who was ousted this month, was receiving a compensation package of nearly US$5.5m, including a cash salary of US$950,000, under Mr Feinberg's pay rules.

In addition to a base salary of US$750,000, Mr Liddell will receive US$3.45m in company stock over three years starting in 2012.

He will get another stock grant of US$2m that vests in three years and is payable in 25 per cent instalments for every 25 per cent repayment of GM's US$6.7 billion in government loans.

GM has received US$52b in taxpayer assistance, but most of that has been converted into equity that gives the US Government a 60 per cent stake in the company.

Last week, GM repaid US$1b, its first payment to the Government.

Under new pay rules for companies that received substantial government aid set in October, the base pay of General Motors' top executives is capped at US$500,000.

Much of the compensation for GM officials will be paid in company stock that cannot be redeemed until beginning in 2011 or after GM starts repaying its government loans.

However, a small number of exemptions to pay limits have been granted in the case of other big recipients of government money, including boosting the pay package of an American International Group employee to better align it with other executives at the insurer.

- AP