P. M. BRIEFING : General Motors Stockholders Up Smith’s Pension to $1.2 Million

General Motors Corp. stockholders today approved a controversial proposal to increase pension benefits for 3,350 senior executives, including outgoing chairman Roger B. Smith, who will see his pension nearly double to $1.2 million a year.

Voting at their annual meeting, holders of 83% of GM stock approved the pension proposal.

Approval of the pension plan came despite the apparent anger of some shareholders over the proposal. In discussing the plan, Smith fielded a series of irate questions about the pension increases.

“This is absolutely outrageous that anybody would need a pension of $1 million,” said shareholder Evelyn Davis. Her comments were met with applause.

The annual meeting was the first opportunity for shareholders to confront Smith on the plan, which will cost GM an estimated $41.6 million.

GM has defended the plan, saying its pensions lag behind most major American corporations and the increases are necessary to retain good executives.

Smith, who retires this summer, said the company was not obligated to put the pension plan to a vote but was conducting an experiment out of respect for stockholders.

He hinted that GM is unlikely to repeat the experiment, given the negative reaction to the proposal.