General Motors Corp. Chief Executive Rick Wagoner and several senior company executives have received performance-based stock awards, according to documents filed with federal regulators.
On Tuesday, Wagoner was granted 95,000 restricted shares of GM stock to be delivered in annual installments during the next five years, the company said Thursday in a filing with the Securities and Exchange Commission. The stock had an estimated value of $2.8 million on the day the shares were granted.
Wagoner also on Tuesday received an option to buy 500,000 shares at $29.11, below the Tuesday closing price of $29.35. The option vests and can be exercised annually in equal installments over three years, but Wagoner can wait as long as 10 years to exercise the option, according to the filing.
Executives make money on stock options when the share prices rise beyond the price at which they bought the stock.
The performance-based stock for Wagoner is the first time he has received such an award since 2003, and is part of a move by the board to tie compensation more to the company's future earnings and stock price, said spokeswoman Rene Rashid-Merem.
"Those stock grants are highly weighted to the forward-looking performance of the company and tied to the future performance of the company," she said.
The company on Tuesday disclosed stock awards for a total of 18 executives. GM will release its full executive compensation when it files its proxy statement late next month.
GM lost $10.4 billion in 2005 but underwent a massive restructuring and trimmed its loss to $2 billion in 2006, an $8.4 billion improvement. The company also posted a fourth-quarter profit of $950 million last year.
Also in the filings, GM disclosed that Vice Chairman Robert Lutz and Vice Chairman and Chief Financial Officer Fritz Henderson each received 60,000 restricted shares to be granted over the next five years. The shares were worth an estimated value of $1.8 million on Tuesday, the day they were granted. The two also received options to buy 250,000 shares under terms similar to Wagoner's.
GM stock rose $1.39, or 4.59 percent, to $31.71, in afternoon trading on the New York Stock Exchange.