General Motors Co. has lowered the percentage within the performance plan payout the automaker makes use of to find out a salaried worker’s bonus payout this 12 months.
The percentage this 12 months is 158%, down from final 12 months’s 200%, The Detroit News has confirmed. The lowered percentage comes as GM reported report pre-tax earnings of $14.5 billion for 2022 this week. Every 12 months, GM executives consider the enterprise panorama to develop targets to satisfy for the 12 months. The targets change 12 months to 12 months and that may have an effect on the payout.
Under this 12 months’s plan, a salaried worker with a wage of $80,000 a 12 months can be eligible for a bonus of greater than $12,000.
On Tuesday, GM mentioned it could give its highest-ever profit-sharing checks to 42,300 hourly employees represented by the United Auto Workers. In 2019, the UAW negotiated the top of a $12,000 cap on profit-sharing bonuses. For each $1 billion GM makes in North America, the automaker’s unionized U.S. employees will obtain $1,000, in response to the GM/United Auto Workers settlement. GM made about $13 billion in North America in 2022.
“We are proud to share our success with our workforce, each represented and salaried employees,” GM spokesperson Maria Raynal mentioned in a press release. “We know that it takes a workforce effort to realize these outcomes.”
Most U.S. GM salaried employees are eligible to obtain a bonus, Raynal mentioned. GM had about 53,000 salaried U.S. employees as of 2021, in response to GM’s annual report filed with Securities and Exchange Commission.
For GM’s salaried employees for 2022, employees throughout completely different ranges obtain sure percentage goal bonus payouts, with the percentage rising for higher-level employees:
- Level 2 by way of stage 6: 10%
- Level 7: 13%
- Level 8: 18%
- Level 9: 24%
The formulation used for salaried employees is: the worker’s wage multiplied by the goal payout multiplied by the corporate’s performance plan payout in percentage type (158%) equals the worker’s payout alternative, which is then multiplied by a person performance percentage.
For instance, for a sixth-level worker making $80,000, the formulation can be: $80,000 multiplied by 10% multiplied by 158% equals $12,640, which might then be multiplied by the person performance percentage.