GM CEO Whitacre annual cash salary USD 1.7 million

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General Motors Co Chief Executive Ed Whitacre will receive a USD 1.7 million annual salary under a compensation package approved by the US Treasury's pay czar Kenneth Feinberg, the automaker said on Friday.

Whitacre, who was named CEO in December when former CEO Fritz Henderson resigned under board pressure, also will receive USD 7.3 million in the form of company stock, GM said in a filing with the US Securities and Exchange Commission.

The automaker, which emerged from a government-supported bankruptcy in July aimed at returning to profitability after years of losses, also said on Friday it hired Henderson to advise it on international issues.

Henderson, who was ousted after eight months as CEO, will receive USD 59,090 per month plus expenses for a contract that runs through the end of 2010.

GM, now more than 60% owned by the US Treasury, is subject to pay restrictions on its senior executives, which the automaker's leaders have said made it difficult to attract top talent from outside the company.

Feinberg is in charge of setting pay for the top 25 executives at five companies that have received the largest taxpayer bailouts. He was appointed in June amid an outpouring of public anger that bailout recipients were receiving large payouts, even while being on a government lifeline.

The No.1 US automaker, GM took over USD 50 billion in US taxpayer funding and emerged from a bankruptcy directed by the Obama administration in July.

Feinberg has been removing large cash payouts and encouraging long-term restricted stock, as he tries to strike the balance between reforming pay practices and keeping key talent at bailed-out firms.

Whitacre, 68, will receive USD 5.3 million in salary stock that will be paid over three years beginning in 2012 and USD 2 million of restricted stock under the company's long-term incentive plan. GM shares are not yet publicly traded.

Whitacre took over as CEO on an interim basis after Henderson resigned in a split with the board in December and said in January he would stay on the job indefinitely. He receives no additional compensation as GM chairman.