P.M. BRIEFING : State to Fight GM Pension Hikes : Michigan Treasurer to Oppose GM Executive Pension Hikes

Michigan state Treasurer Robert Bowman said today he plans to vote the state’s 8.8 million General Motors Corp. shares against the auto maker’s proposal to substantially increase the pensions of its senior executives.

“We don’t think it’s the best use of $42 million,” said Bowman, who oversees the Michigan State Retirement System, one of GM’s largest institutional shareholders.

“Research and development and plant investments, among other things, are a better use of their money,” he added, referring to the anticipated $41.6-million cost of increasing the pensions of 3,350 senior GM executives.

The state’s shares equal roughly 1.5% of the auto maker’s 602 million common shares.

The proposal, which will be voted on at GM’s May 25 annual meeting, has drawn attention and criticism because it will double the pension of outgoing Chairman Roger Smith to nearly $1.2 million. Smith is to retire Aug. 1.

The United Auto Workers union said Smith’s compensation is already excessive and unwarranted given GM’s poor performance in the U.S. car market during the last decade.