Each member of the board who is not a GM employee will be paid $200,000 annually for their servicesEnlarge Photo
General Motors' recent bankruptcy proceedings have seen the company transformed as it leaves behind failing assets
, and according to the company these changes have also been reflected through a restructured board of directors. Five new members have been added to the board following the bankruptcy, with major stakeholders being given discretion to hire new board members depending on the size of their stake.
For the U.S. Treasury, which now owns roughly 68% of GM, the government department was able to select 4 of the new 5 board members. The Treasury appointed Daniel F. Akerson, David Bonderman, Robert D. Krebbs and Patricia Russo as their designated board members for the new company. Akerson is a director at the Carlyle Group, a private equity firm based in Washington D.C. that is ranked as the world's largest.
Meanwhile, the Canadian government also has a stake in the new GM, and although it is not as sizable as the U.S. Treasury's, its 11.7% stake affords the Canadians a spot on the board to designate someone of their own choosing, which in this case was Carol Stephenson, a business school dean and director of ING Canada.
According to GM, there will be a total of 13 directors on the board, including the 5 new additions that will join current board members such as CEO Fritz Henderson and Kent Kresa. Each of the non-GM executives will be paid $200,000 annually for their services.