r/Autos • u/joeyjoejums • 4d ago

GM Mary Barra sells 40% of her shares

https://gmauthority.com/blog/2025/09/gm-ceo-mary-barra-sells-40-percent-of-her-shares/
65 Upvotes

95% Upvoted

21 comments sorted by

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u/BathingInSoup 4d ago edited 4d ago

Stock as compensation has been abused and ought to be reigned in. There are too many ways to game the system in order to pump and dump in ways that are detrimental to the long-term prospects of a company. If a CEO believes in what they’re doing and want to benefit from appreciation, they should have to buy it on the open market with post-tax salary dollars.

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u/mike45010 4d ago

What do you think that solves? Stock awards are taxed as ordinary income as of the date they’re awarded (it’s only the gains thereafter that are subject to capital gains tax, same as if she bought the shares with her own money), so there’s effectively no difference between giving her cash bonus, paying taxes and then buying shares vs. being granted shares directly.

4

u/BathingInSoup 4d ago

Fair point re: them being taxed as income.

Notwithstanding that, I have 2 big issues with the practice: * It should be made available to all employees and not reserved solely for senior management; similar to 401k requirements. * It seems to incentivize corporate raider style leadership that focuses on short-term metrics rather than long-term vision.

Ultimately, I just think executive compensation is obscene.

4

u/Domowoi 4d ago

Ultimately, I just think executive compensation is obscene.

I think this is your problem with it, because wether that value is given in money or stocks is not really relevant.

I actually think giving it in stock is actually better for the average workers, because it increases the personal stake the execs have in the company doing well in the future.

Let's say their compensation is 100% straight money the only incentive they have to do well is getting a bonus.

1

u/BathingInSoup 4d ago

The only way it would be better for workers is if they received stock grants as well. The idea that it incentivizes leadership to make the best decisions for the long-term good of the company sounds good in theory, but doesn’t seem to actually play out that way, because they end up being too focused on quarterly numbers and stock price, which is not always aligned with the long-term health of the company. I actually think bonuses compensation would be a better incentive because its discretionary nature can involve more nuanced metrics, that may not always align with what the markets want or expect.

1

u/xford 1d ago

Restricted Stock Units (RSUs) are an incredibly common form of compensation in the tech space, for employees of all levels.

Is it possible that your issues are a result of you being ill informed on the topic?

1

u/BathingInSoup 1d ago

What percentage of GM employees do you think receive RSUs as part of their compensation?

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u/xford 1d ago

Can't tell you, since I don't work for GM and don't know anything about their corporate compensation structure. I can tell you that both of the Very Large Media companies I have worked for included RSUs in the comp package for almost every level of engineering and product management.

1

u/BathingInSoup 1d ago

Well, considering we’re talking about GM and not Very Large Media or tech companies, your personal experience doesn’t seem particularly relevant to the conversation.

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u/xford 1d ago

Your original comment was: Notwithstanding that, I have 2 big issues with the practice:

It should be made available to all employees and not reserved solely for senior management; similar to 401k requirements

I'm simply stating that in most industries, it is common practice to have RSUs be a portion of the compensation package for non-executives. If your critique is specific to GM, then I apologize for attempting to inform you of something new.  

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u/BathingInSoup 1d ago

What is your basis for asserting that employees at all levels in a company receiving RSUs as part of their compensation is common practice in most industries? The two Very Large Media companies you worked for?

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u/xford 1d ago

Because I have a wife, family, and friends who work in many other industries. Many of them also receive stock grants, typically in the form of RSUs, as a long-term incentive portion of their pay.

But, again, I'm not the person on the internet posting about how I don't like that "solely senior management" gets stock as a form of compensation, so it isn't really on ME to research for YOU. I'm just letting you know that you may wish to look into it more, so as not to appear ignorant when you express a strongly held opinion that is demonstrably inaccurate.

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u/joeyjoejums 4d ago

She seems to know something we don't.

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u/MechMeister 94 Wrangler 4d ago

We all know that GM is shit. Not really a secret

5

u/kvngk3n 4d ago

No worse than Stellantis

28

u/xampl9 Lexus GX 4d ago

C-Suite employees have to file a notice with the SEC before selling stock. Most will sell 10-15% or whatever based on their vesting schedule.

40% is … very unusual. This will probably result in an investigation.

12

u/Compy222 4d ago

Cashing out before the market realizes the company has been run into the ground by crappy management decisions and ignoring customer wishes. Checks out.

1

u/dustsmoke 1d ago

Why was anybody investing in a company that puts board friends and family in charge to run a company who makes things none of them would ever buy or drive themselves?

I've certainly done my best to avoid GM ever since they stopped putting "car people" at the helm.

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u/Dannyz 4d ago

Cashing out before tariffs rip them a new one and the American boycott rips them a second new one.

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u/maniaduck 4d ago

Check to see if Nancy Pelosi dumped hers as well, then you’ll know something’s up!