Media Center

DETROIT (Oct. 22, 2009) -- GMAC Financial Services has received notification from the U.S. Department of the Treasury’s Office of the Special Master on the company’s executive compensation plan for its most highly compensated executives.  The plan balances driving sustainable shareholder value with the ability to retain key talent critical in continuing efforts to transform the company and restore profitability. 

The compensation package was a result of collaboration between the Special Master Kenneth Feinberg, the GMAC Board of Directors Compensation, Nominating and Governance Committee, and GMAC executive management. 

“This has been a fair and constructive process to arrive at a new compensation structure,” said Chairman of GMAC Board of Directors’ Compensation, Nominating and Governance Committee Kim S. Fennebresque.  “We believe the plan will enable us to retain key talent needed to continue the transformational efforts within the company and maximize the investments by our shareholders.”

The plan is consistent with the company’s compensation philosophy which aims to create sustainable shareholder value, discourage excessive risk taking, and remain competitive while improving business performance.  The company’s compensation plan for 2009 includes three elements: base salary in the form of cash, base salary in the form of deferred stock units, and incentive restricted stock units. 

Approximately 85 percent of the total compensation will be long-term equity, with only 15 percent of compensation being in the form of cash.  This structure is designed to closely link pay for performance and encourage long-term decision making that drives GMAC’s efforts to improve the financial health of the company and repay the Troubled Asset Relief Program funds. 

Contact:
Gina Proia
917-369-2364
gina.proia@gmacfs.com