GM Chief’s 2005 Pay Is Halved Amid Heavy Loss, Credit Woes

General Motors Corp. Chairman and Chief Executive Rick Wagoner’s 2005 compensation was cut by nearly half as the automaker lost billions of dollars and its credit rating was slashed to junk status, according to a proxy statement filed Friday with federal regulators.

Wagoner received a package worth nearly $5.5 million in 2005, 46% less than the $10-million package he received in 2004.

Wagoner’s salary remained $2.2 million, unchanged since 2003. He did not receive a bonus, compared with a $2.5-million bonus in 2004. He was granted stock options on 400,000 shares valued at $2.9 million. In 2004, his options on 400,000 shares were worth $5.1 million.

Wagoner also received $345,082 in personal benefits, including $198,520 for security and $95,856 for use of the company aircraft.

GM’s four-member compensation committee said it had considered several factors in determining Wagoner’s compensation, including the company’s $10.6-billion loss in 2005 and ongoing costs for restructuring at GM and Delphi Corp., the automaker’s former parts division. Delphi is looking for financial assistance from GM as it reorganizes in Bankruptcy Court. GM announced last fall a plan to cut 30,000 U.S. hourly jobs and to close 12 plants by 2008.

GM shares fell 32 cents to $22.88 on Friday.