General Motors will start tying a “significant part” of the compensation that its executives receive to the brand’s electrification goals, as an incentive to support the introduction of the technology in its vehicles.
“At GM, our compensation has always been driven by the company’s success. And no one should doubt our commitment to lead in EVs or the passion our team has for that mission,” CEO Mary Barra said during the company’s first-quarter earnings call.
According to CNBC, Barra said that the compensation benchmarks will emphasize the Detroit automaker’s commitment to EVs.
Just like every other EV maker on the planet, GM hopes to surpass Tesla’s EV sales by the middle of the decade and simultaneously generate $50 billion from EVs in North America according to Barra.
Tesla’s clout has generated a market cap of $900 billion, and status as the top-valued automaker has caused Wall Street to put pressure on GM to transition to full electric vehicle sales to “unlock shareholder value.”
By 2035, the brand is planning for a complete conversion to entirely electric vehicle sales. In order to do so, it will increase electric vehicle production in North America and China by 2 million units by 2025. The company’s upcoming proxy filing will reveal more details about the EV compensation targets when it is filed on April 29th.
General Motors will be spending an incredible $35 billion on future electric and autonomous vehicle programs through 2025, and part of that budget includes the construction of all-new manufacturing facilities as well as the renovation of existing ones. Most recently, GM announced a $7 billion investment – the single largest investment announcement in the company’s history – to upgrade its Orion Assembly Plant to build the Chevrolet Silverado EV and GMC Sierra EV, as well as erect a brand new battery cell factory in Lansing, along with a major retooling of the existing Lansing Grand River Assembly plant.