GMAC CEO awarded $14.6 million in 2007

NEW YORK, Feb 27, 2008; Reuters reported that GMAC LLC said on Wednesday its chief executive was awarded about $14.6 million of compensation in 2007, when the finance company lost about $2.33 billion because of problems in its mortgage business.

Eric Feldstein took over GMAC, best known for its auto finance business, in November 2006, after working 25 years at General Motors Corp, including four years as chairman of the former General Motors Acceptance Corp.

The automaker owns 49 percent of GMAC, after selling a 51 percent stake in November 2006 to a group led by private equity firm Cerberus Capital Management LP.

Feldstein was awarded a $1.2 million salary, a $900,000 bonus, and $3.63 million of other compensation, according to GMAC's annual report filed with the U.S. Securities and Exchange Commission.

He also received a performance award valued at $2.95 million as of the grant date, and incentive payments valued at $5.91 million as of the grant date, the filing shows. These were all granted in January 2007, according to the filing, just before the nation's housing slump became more widely evident.

Other compensation included a dozen items, including $2.35 million to cover taxes on a performance award, a $1 million retention payment, $66,703 for use of company aircraft, and $7,200 to pay for a rented parking space in New York City.

Compensation is based on salary, bonus, the value of stock options and other awards granted during the year, and incentives and perks.

GMAC said it increased some executives' potential incentive and equity awards post-2007, following a $4.35 billion loss last year at its Residential Capital LLC mortgage unit.

It said that because of ResCap's problems in 2007, "it is unlikely that the equity and long-term cash incentive awards granted in 2007 will deliver their intended value. This has significantly diminished the incentive and retention impact of our long-term incentive program."

GMAC is based in Detroit, and ResCap in Minneapolis.

Reporting for Reuters by Jonathan Stempel; Editing by Leslie Gevirtz