GM Drives a Hard Bargain

Inspiration meets innovation at Brandweek, the ultimate marketing experience. Join industry luminaries, rising talent and strategic experts in Phoenix, Arizona this September 23–26 to assess challenges, develop solutions and create new pathways for growth. Register early to save.

DETROIT — After several months of negotiations, General Motors and its agencies have signed compensation agreements that sources said lean more heavily on incentive pay and reduce fees. Sources said GM pushed agencies to cut fees-by as much as 10 percent, according to one estimate-during the talks that led to the 2002 contracts. How much agency fees were ultimately reduced could not be determined. The new pacts are also expected to reflect a change in the way GM determines the incentive-driven portion of agencies’ fees, sources said.

AW+

WORK SMARTER - LEARN, GROW AND BE INSPIRED.

Subscribe today!

To Read the Full Story Become an Adweek+ Subscriber

View Subscription Options

Already a member? Sign in