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GM salaried workers should expect smaller bonuses with new formula

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General Motors has revealed to its salaried workforce the formula by which their annual bonuses will be based this year and it is a lower calculus than that used in 2021 despite GM’s strong financial performance for the year, the Free Press has learned.

Still, a senior-level manager making $200,000 could get a bonus of more than $75,000, which is down from a possible $96,000 for 2021. A more entry-level salaried GM employee making $80,000 could take home more than $12,600 in a bonus.

Early Tuesday, GM reported earnings that surpassed Wall Street expectations. The automaker reported pretax profit gains of $1 billion in the fourth quarter to $3.79 billion. For the full year, pretax profits rose to $14.5 billion compared with $14.3 billion in 2021. At that time, GM released its profit-sharing for qualified U.S. hourly workers, which could be up to $12,750.

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In an internal memo sent to the salaried workforce Tuesday, which was obtained by the Free Press, the 2022 GM payout formula will be calculated by 158%, that is down compared with last year when it was calculated using 200%, said three GM employees familiar with the plan. They asked to not be named because they are not authorized to speak publicly about the topic.

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