Executive Lead of GM Sold Nearly Half of Her Valuable Stockholdings Worth Multiple Millions
GM CEO Mary Barra Sells $35.4 Million in Personal Stock and Options
In a significant move, Mary Barra, the CEO of General Motors (GM), sold approximately $35.4 million worth of personal stock and options in August. According to reports, this sale was not a result of any insider trading regulations or concerns.
The stock options sold by Barra were from her compensation in early 2020 and accruals between 2011 and 2024. She exercised 375,024 options at $35.49 per share, totaling $8.5 million, and 235,000 stock options at a strike price of $39, netting around $4.5 million.
In addition, Barra sold 297,000 shares at an average price of $58.24, equating to approximately $17.3 million. She also sold 87,839 shares from an annuity trust at $58.13, bringing in about $5.1 million.
The exact reasons for these sales were not disclosed in the reported news. However, it was revealed that the purpose of the algorithm used to sell the shares was to prevent accusations of insider trading. The stocks and options were sold through an algorithm that automatically sells shares when they hit a predetermined price.
In June, GM's board agreed to increase Barra's short and long-term compensation by 7.7%. The increase in Barra's compensation was described as being "commensurate with our strategy to reward and motivate performance and to offer market-competitive compensation."
It's important to note that about 92% of Barra's compensation is linked to the company's results, with performance and measurable targets. In 2024, stock and performance-based awards accounted for 76% of her total compensation package.
Barra's base salary has remained steady at $2.1 million since 2017. However, the exact timing and details of when the increase in her compensation will take effect were not specified in the reported news. The reported news also did not disclose any information about the specific terms or conditions of her new compensation package.
The exact reasons for the increase in Barra's compensation and the sales of her stock and options remain unclear. However, the move comes as GM continues to perform well, with its shares reaching new highs in recent months. The Detroit Free Press reported that the sales were part of a planned exercise and sale of options and shares.
In conclusion, Mary Barra, the CEO of GM, sold a significant amount of her personal stock and options in August, totaling $35.4 million. The exact reasons for these sales and the increase in her compensation remain unclear, but they come as GM continues to perform well and its shares reach new highs.
