GM Says Executive Bonuses To Bare The Brunt Of Recall Expenses

The cost of General Motors Co.’s massive ignition-switch recall will cut into executives’ bonuses for last year, even as UAW members’ profit-sharing payments exclude those billions, said two people familiar with the matter.

GM is paying bonuses to UAW members of as much as $9,000, setting aside $2.4 billion in recall-related costs. GM typically doesn’t count one-time charges like recall or restructuring costs when calculating hourly-worker profit sharing, because the payment is designed to reflect the ongoing performance of the business, said spokesman Tom Henderson.

He declined to comment on non-union bonuses.