Chairman Lutz, Vice Chairman Devine Only Two GM Executives to Receive Bonuses in 2001

DETROIT AP reports that Robert Lutz, chairman of General Motors Corp's North America division, and John Devine, GM vice chairman and chief financial officer, were the only two executives at the world's biggest automaker to receive bonuses last year, records show.

GM Chairman John F. Smith Jr. and CEO Rick Wagoner along with other managers will not collect bonuses for last year because the company did not meet its targets for net income, return on net assets, market share and quality, according to spokesman Mark Tanner.

GM earned $1.48 billion, or $3.23 a share, in 2001, down from $4.97 billion, or $8.58 a share, a year earlier. Revenue for the year fell to $177.27 billion from $183.29 billion in 2000.

Lutz, 70, the former Chrysler president who joined GM last September, was guaranteed a minimum $1.5 million cash bonus during his first 12 months in office, and $1 million for the second 12 months.

Devine also was getting a $1.5 million bonus for last year, part of a deal he negotiated when he joined GM in January 2001.

The bonuses were revealed in a filing with the Securities and Exchange Commission Tuesday.

Lutz, known for overseeing development of some of Chrysler's most exciting vehicles such as the PT Cruiser, Prowler and Viper, was brought on to reinvigorate GM's product line.

Under his three-year contract, Lutz also will earn an annual salary of at least $1.4 million, plus 80,000 GM shares if the automaker meets certain performance goals. His bonus can increase depending upon GM's financial performance.

In trading Wednesday on the New York Stock Exchange, GM shares fell 1.8 percent, or $1.10 a share, to close at $59.90.