Welcome back to the latest episode of The Future of Automotive on CBT News, where we put recent automotive and mobility news into the context of the broader themes impacting the industry.
I’m Steve Greenfield from Automotive Ventures, and I’m glad that you could join us this week.
This week, we’re taking a closer look at two auto industry titans — two CEOs with very different incentives, and two very different approaches to their future.
First, a little context. CEO compensation has been climbing steadily across corporate America. In 2024, median total compensation for S&P 500 CEOs rose nearly 10 percent, to a staggering $17.1 million. Stock awards are the biggest driver of those paychecks, and the gap between what CEOs make and what their workers earn has never been wider. At half the companies surveyed by the Associated Press, the average worker would have to put in 192 years to equal just one year of CEO pay.
Against that backdrop, we turn to General Motors CEO Mary Barra. Barra started at GM as an 18-year-old co-op student inspecting fender panels to help pay for college. She climbed the ranks, eventually becoming GM’s first female CEO in 2014, and one of the longest-serving in the company’s history. She’ll turn 64 later this year.
And just last month, filings show Barra sold roughly 40 percent of her personal holdings in GM stock and options — nearly a billion dollars’ worth since February, with about $35 million in August alone. Insider sales on that scale raise eyebrows. Is it simply a smart move for someone nearing retirement? Or is it a signal she sees storm clouds ahead for GM?
Now, contrast that with Tesla’s Elon Musk. While one auto CEO is cashing out, the other is doubling down — in dramatic fashion. Tesla’s board has approved a pay package worth up to one trillion dollars. Yes, trillion with a “T.” To get there, Musk has to lead Tesla to an $8.5 trillion market cap — about twice the value of Nvidia, currently the most valuable company in the world — and hit benchmarks that range from robotaxis to humanoid robots.
The board insists this deal is about more than just cars. In their words, Tesla can’t stop at being an electric vehicle company. They’re betting Musk can transform it into a leader in artificial intelligence, robotics, and services. But the hurdles are enormous: reversing declining sales, building a credible succession plan, and — perhaps most challenging for Musk — staying focused on Tesla for the next decade.
The negotiations were fraught. Musk reportedly threatened to walk if certain conditions weren’t met. The board, meanwhile, tried to reel in his political forays and secure his commitment. In the end, they landed on a package so ambitious that even Musk’s critics admit it forces him to “put his money where his mouth is.”
So, two stories tonight. Mary Barra, nearing retirement, taking chips off the table. Elon Musk, staking his claim on what could be the largest pay package in corporate history.
But it does raise some questions: Is Tesla really worth 20 times General Motors? Does any CEO deserve a trillion-dollar payday? And for Mary Barra — after a lifetime at GM, is her move just savvy timing, or something more?
In the world of automaker CEO compensation, there’s never a dull moment.
So, with that, let’s transition to Our Companies to Watch.
Every week we highlight an interesting company in the automotive technology space to keep an eye on. If you read my weekly Intel Report, we showcase a company to watch, and we then take the opportunity here on this segment each week to share that company with you.
Today, our new company to watch is Lender Compliance Technologies.
LCT sets a new standard for solving lender compliance issues.
Lender Compliance Technologies offers Refund Control, the lender-managed, cancellation and refund system for loan products that protects your relationships with dealers as well as your bottom line.
Product cancellation notices are sent to both dealer and product providers. Notices are automated and traceable for delivery. Early Payoffs, Repos, Total Losses and Charge-offs trigger cancellations.
The LCT product is applicable to Auto, RV, Marine and Powersports loan products.
If you’d like to learn more about Lender Compliance Technologies, you can check them out at www.lct1.com
So that’s it for this week’s Future of Automotive segment.
If you’re an AutoTech entrepreneur working on a solution that helps car dealerships, we want to hear from you. We are actively investing out of our DealerFund.
Don’t forget to check out my first book, “The Future of Automotive Retail,” and my new book, “The Future of Mobility”, both of which are available on Amazon.
Thanks (as always) for your ongoing support and for tuning into CBT News for this week’s Future of Automotive segment. We’ll see you next week!
