Summary
General Motors Co. (GM) announced a significant leadership change in its finance department through an 8-K filing on October 30, 2020. The company appointed Paul Jacobson as the new Executive Vice President and Chief Financial Officer, effective December 1, 2020. Mr. Jacobson, who previously held the CFO position at Delta Air Lines, brings extensive financial expertise to GM. This appointment signifies a strategic move to strengthen GM's financial leadership as it navigates its future business objectives. The filing also details Mr. Jacobson's comprehensive compensation package, which includes a base salary, annual cash incentive targets, and significant equity awards in performance share units and stock options under GM's incentive plans. A notable aspect is the inclusion of one-time grants of performance share units, stock options, and restricted stock units (RSUs) designed to compensate for forfeited awards from his prior employer. These compensation details underscore the company's commitment to attracting and retaining top financial talent.
Key Highlights
- 1General Motors (GM) appointed Paul Jacobson as its new Executive Vice President and Chief Financial Officer, effective December 1, 2020.
- 2Mr. Jacobson succeeds John Stapleton, who served as Interim CFO.
- 3Jacobson's prior experience includes serving as CFO and other senior finance roles at Delta Air Lines.
- 4His initial annual compensation includes a $1,000,000 base salary.
- 5He is eligible for a target annual cash incentive of 125% of his base salary under GM's STIP.
- 6Significant equity awards include target annual grants of performance share units ($3,937,500) and stock options ($1,312,500) under the LTIP.
- 7A one-time grant of $1,575,000 in performance share units, $525,000 in stock options, and $2,500,000 in RSUs is provided to Mr. Jacobson to compensate for forfeited awards from his previous employer.