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High box office stakes for Alita: Battle Angel

LOS ANGELES — Manga-inspired action epic Alita: Battle Angel begins its worldwide cinema roll out this week but with a hefty budget and years in the making, producer James Cameron and director Robert Rodriguez acknowledge the stakes are high at the box office.
The CGI-heavy action adventure about a cyborg heroine in a post-apocalyptic world is reported to have been made with a budget of around $200 million, according to the Hollywood press.
Avatar director Mr. Cameron first wrote a script in 2004 for the film, but eventually passed on the project to Sin City director Mr. Rodriguez.
“It’s in that battle-cruiser class of budgets, there’s no question about it so, yeah, the stakes are high,” Mr. Cameron said at the film’s premiere in Los Angeles on Tuesday.
“If people show up we’re definitely going to do at least one more if not two. It’s mapped out for three in total.”
Critics have given lukewarm reviews to the movie, whose release date has been postponed twice.
“There’s a lot riding on it but you never know if it does really well, people come out to see it and people want more, you’ve want to make sure you’ve got your bases covered,” Mr. Rodriguez said.
The film stars Rosa Salazar in the title role with Christoph Waltz, Jennifer Connelly and Mahershala Ali in supporting roles. — Reuters

Ayala-led IMI earnings increase by 34% in 2018

AYALA-LED Integrated Micro-Electronics, Inc. (IMI) reported a 34% increase in attributable profit for 2018, due to net gains from the sale of a China unit and other one-off transactions.
In a disclosure to the stock exchange on Thursday, IMI said net income attributable to the parent reached $45.5 million, higher than the $34 million it posted in the same period a year ago.
IMI attributed the increase to non-operating items, including a net gain on the sale of a China entity and the reversal of contingent consideration related to its acquisition of United Kingdom-based electronics manufacturer STI Enterprises, Limited.
The company, however, noted that operationally and excluding foreign exchange impact, net income fell by 21% to $25.8 million in 2018. Effects of the depreciation of the Chinese yuan and the euro, alongside higher interest rates, also added downward pressure on the firm’s bottomline.
“2018 was a challenging yet exciting year. Although the company was affected financially by the global component shortage issue, we are confident that the choices we made years ago were the right decisions,” IMI Chief Executive Officer Arthur Tan said in a statement.
“We remain committed in our strategy to develop complex and high value products that allows us to remain relevant in our focused target markets.”
Consolidated revenues, meanwhile, grew by 24% to $1.35 billion for the full year, versus $1.09 billion. Its traditional business alone generated a 16% increase in revenues to $1.04 billion. Its recently acquired company, STI and Germany’s VIA Optronics, contributed $312.4 million, 61% higher year on year.
Despite challenges to improve its bottomline, IMI said its business pipeline grew following $320 million in new project awards. Of this, 72% are for automotive applications.
“This drive to be a critical contributor to the digital car of tomorrow and other technological breakthroughs will enable us to deliver and meet increasing expectations of our stakeholders,” Mr. Tan said.
IMI President and Chief Operating Officer Gilles Bernard also added that building solid relationships with customers and suppliers will help solve the imbalance between supply and demand in the business.
“We have to establish realistic targets with positive thinking to stay ahead of the game,” Mr. Bernard said in a statement.
IMI said it spent $65 million in capital expenditures in 2018 to build more complex manufacturing capabilities. The allocation was funded by proceeds from its stock rights offering worth P5 billion last year.
Shares in IMI shed 22 centavos or 1.62% to close at P13.38 each at the stock exchange on Thursday. — Arra B. Francia

Smart’s very first web series is the romance Find Her

SMART Communications Inc. has finally ventured into the realm of web series as it introduces Find Her, a seven-part miniseries about the role of technology in romance, which drops its first episodes on Feb. 9 on Smart’s YouTube channel.
“We’ve very proud to offer Find Her… because it’s groundbreaking and unique,” Andrew L. Santos, PLDT-Smart First Vice-President for consumer marketing, said during the launch on Feb. 6 at the cinemas of Century City Mall in Makati City.
“Instead of doing the usual two minute viral video, we decided that it’s really important to give the viewers what we think they like and if you look at the audience nowadays, they really like to binge watch [and so] we came up with something that is really beautifully crafted,” he said.
The series is directed by Victor Kaiba Villanueva who is best known for helming the Cebuano film Patay na si Hesus (2016), a dark comedy road trip film which won the Audience Choice Award at the 2016 Quezon City International Film Festival and the Jury Prize at the 2017 Pista ng Pelikulang Pilipino.
“[Find Her] was partly inspired by Your Name because I’m a bit of a fan of anime (Japanese animation) and I also wanted to do a sort of mature kind of romance [about people] in their 20s because that’s where I’m at right now in my life,” Mr. Villanueva said during the event.
Your Name or Kimi No Na Wa is a 2016 animated film by Makoto Shinkai about two high school students who embark on a quest to meet each other after they magically swap bodies.
Using the same theme of parallel worlds, Find Her follows three individuals — Lia (played by Bea Ruaro), Aika (Dionne Monsanto) and Gabe (Vance Larena) — as they each try to find out if love can be found online.
As this is his first digital project, Mr. Villanueva his challenge was to do the episodes in the way that they are still engaging despite the shorter running time. Each of the seven episodes is about 12 minutes long.
“I was particular with shortening the dialogue,” he said before explaining that unlike full-length features where he is given time to set up the scene and pour minutes into creating nuance, the web series format challenged him to tell the story quicker yet still be able to engage the audience.
Based on the first three episodes that the media previewed during the launch, it is a well-crafted and snappily paced mini series that elicited kilig (romantic excitement) from several members of the audience along with curiosity as the preview ended with a cliffhanger.
Because this is a Valentine’s Day offering, Mr. Santos said they made the decision to launch the first five episodes on Feb. 9 and the last two episodes on Feb. 14. This was done to let the audience know “the characters more” and so “they can get a feel of the story” but “the climax should be on Valentine’s Day.”
Find Her is the first in a line of web series created by Smart called “PLDT-Smart STORIES” though Mr. Santos was mum about the details of the other projects. He said that they are currently not shooting another series but are looking at other concepts to produce in the near future.
Find Her premieres its first five episodes on Feb. 9 on the Smart Communications YouTube Channel and will be followed by the last two episodes on Feb. 14.
Smart Communications is the wireless subsidiary of PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Zsarlene B. Chua

CCLEx concessionaire secures P19-B loan

THE private concessionaire for the Cebu-Cordova Link Expressway (CCLEx) has secured a P19-billion loan facility with six local banks, which will partially fund the construction of the bridge project in the Visayas.
Cebu Cordova Link Expressway Corp. (CCLEC) said in a statement it has inked a 15-year omnibus loan and security agreement with Rizal Commercial Banking Corp. (RCBC), Development Bank of the Philippines (DBP), Robinsons Bank Corp., Union Bank of the Philippines, Bank of the Philippine Islands (BPI), and Security Bank Corp.
“Construction completion of the (CCLEx) project is assured now that it has secured a P19-billion syndicated loan facility,” the unit of Metro Pacific Tollways Corp. (MPTC) said, noting the main foundation of the bridge is now nearing completion.
“All 21 piles of the main bridge’s Tower 2 have been completed while 17 out of 21 piles at the Tower 1 have been erected. These form part of the bridge’s main foundation,” the company said. “Piling works for the other project components such as the Cebu South Coastal Road on-ramp and viaduct are underway.”
The CCLEx is a P30-billion, 8.5-kilometer toll bridge that will link Mactan island to mainland Cebu.
The whole bridge is scheduled to open in 2021, by then it is hoped to benefit around 50,000 vehicles every day by decongesting the two existing bridges linking Mactan and Cebu.
MPTC is the tollways unit of the Metro Pacific Investments Corp. (MPIC), one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Denise A. Valdez

Berlinale unrolls green carpet for politically charged film festival

BERLIN — A mother fleeing her violent husband, a serial killer who preys on women, and famine in 1930s Ukraine are among the weighty social and political themes explored in films showcased at this year’s Berlin Film Festival.
Short on star power but strong on gender balance and political engagement, the 2019 Berlinale opens on Thursday evening with the premiere of Danish director Lone Scherfig’s The Kindness of Strangers.
The film, set in New York, is about Clara, played by Zoe Kazan, fleeing her violent policeman husband, and touches on themes of power and abuse that pervade much of the festival.
Other highlights include Brazilian director Wagner Moura’s Marighella, about writer Carlos Marighella’s death at the hands of Brazil’s former military dictatorship, and Polish director Agnieszka Holland’s Mr. Jones, about a Welsh journalist whose 1930s reports from the Soviet Union exposed the horror of famine in Ukraine.
Other hotly tipped films include German director Fatih Akin’s The Golden Glove, the psychologically grueling true story of a serial killer who preyed on women in Hamburg’s port district in the 1970s.
Though stars are present at this festival — including Juliette Binoche, chair of the prize jury — the lower-key feel is typical of Dieter Kosslick, outgoing director of the Berlinale, said Scott Roxborough, European bureau chief at The Hollywood Reporter.
WOMEN DIRECTORS
With the film industry still reeling from the “#MeToo” movement, when a series of prominent male figures were revealed as sexual predators and serial abusers of women, this Berlinale stands out for its depth of female representation, he said.
“Seven of the 17 films (competing for a prize), 41%, are female-directed, which isn’t quite 50% but it’s a lot better than any of the other big film festivals,” Mr. Roxborough said. “Venice last year had one female director.”
Around 400 films will be shown at this year’s Berlinale, of which 17 are competing for the Golden and Silver Bears.
The absence of star-power is also a reflection of the festival’s timing, since Venice’s spring and Cannes’s autumn slots are better for films seeking to target the Oscars, which remain the film industry’s ultimate prize.
The Academy Awards, or Oscars, ceremony usually takes place in late February or early March.
In another nod to contemporary issues this year, the festival will highlight the importance of protecting the environment by replacing the traditional red carpet for stars to walk down with a green one woven from recycled fishing nets. — Reuters

PRC signals reduced coursework requirement for professionals

THE Professional Regulation Commission (PRC) said that it may require less refresher coursework from professionals as the agency makes adjustments to implement the Continuing Professional Development (CPD) Law.
In an interview with BusinessWorld, PRC Chairman Teofilo S. Pilando Jr. said that commission is planning a transition period before fully implementing the CPD law to reduce the burden on professionals, and to allow for time to build up the PRC’s capabilities. During the transition, mandatory refresher credit requirements may be eased.
A prescribed volume of coursework is required of professionals seeking to renew their PRC registrations.
“Among the things we are proposing will be a transition period in the implementation of the law,” he said.
Mr. Pilando added, “Under the old Implementing Rules and Regulations, most of the professions require 45 credit units but during the transition period, we will require at most 15 units. We know it takes time to ideally implement this but at the same time, we cannot say 0 units.”
Last year, in a Senate hearing, Senators Antonio F. Trillanes IV, Ralph G. Recto, Juan Miguel F. Zubiri, and Aquilino L. Pimentel III noted the difficulty many professionals have experienced in complying with the 45-credit requirement and the lack of PRC facilities to host coursework in many parts of the country.
The PRC Chairman said that the commission needs to build its capacity before it can fully enforce the CPD Law.
“We are supposed to achieve standardization… and develop further alternative modes of compliance… We have to have the necessary materials and premises,” Mr. Pilando said.
On Monday, the PRC was summoned for consultations with the Senate on its proposed amendments to the rules for renewing professional licenses.
“(T)o cushion the supposed burden of implementation, from the start we already know that we need some adjustments… considering what the law is contemplating, we are amending the IRR, to make it less burdensome and at the same time still maintain the intent of the law,” he said.
Asked to estimate how long the transition period will be, Mr. Pilando said “It’s hard for us to give definitive period because it hinges on the type of support we are going to get.” — Gillian M. Cortez

PMFTC inks leaf supply deal with Universal

UNIVERSAL Corp. on Thursday said its subsidiary is increasing sales of leaf tobaccos in the Philippines as it signed a new leaf supply agreement with Philip Morris International Management SA (PMIMSA).
Under the new deal, PMFTC, Inc., an affiliate of PMIMSA, will buy processed grades of tobacco from Universal Leaf Philippines, Inc. (ULPI), starting with this year’s crop.
Previously, PMFTC bought leaf tobaccos produced by its own contracted grower base and process these using its own facility.
“The expansion of direct contracting by ULPI will provide procurement synergies and economies of scale that will promote efficient leaf utilization of tobaccos supplied to PMFTC and our other customers, and will support the competitiveness of Philippine tobaccos in the global leaf markets,” Universal Corporation Chairman, President and Chief Executive Officer George C. Freeman III said in a statement on Thursday.
“In addition, this new arrangement exemplifies our commitment to prioritize investments for the growth of our core tobacco business consistent with our capital allocation strategy,” Mr. Freeman added.
Universal Corporation, which is based in Richmond, Virginia, is a global supplier of tobacco leaf in more than 30 countries. It started its business in the Philippines in the 1960s.
PMFTC is the joint-venture company between Philip Morris Philippines Manufacturing, Inc. and Fortune Tobacco Corp. — R.J.N. Ignacio

Oscars to go hostless for only second time

LOS ANGELES — This year’s Oscar ceremony will go ahead without an official host for only the second time in its history, an ABC television executive said on Tuesday.
Speaking just three weeks before the highest honors in the movie industry are handed out, ABC entertainment president Karey Burke said the Feb. 24 event would forgo a host and “just have presenters host the Oscars.”
ABC, a unit of Walt Disney Co. televises the Oscars ceremony annually and is closely involved in planning the telecast.
Comedian Kevin Hart in December stepped down from hosting the Oscars after past homophobic tweets resurfaced. No replacement was announced but there had been no official statements on how the ceremony would proceed.
The Oscars ceremony has gone without a host only once before in its 91-year history, in 1989.
Ms. Burke said the decision was taken after what she called “the messiness” over the Mr. Hart withdrawal and an attempt to revive his chances.
“After that, it was pretty clear that we were going to stay the course and just have presenters host the Oscars. We all got on board with that idea pretty quickly,” Ms. Burke told reporters at the Television Critics Association meeting in the Los Angeles suburb of Pasadena.
She said the Academy of Motion Picture Arts and Sciences, which organizes the Oscars, had promised ABC last year to keep the telecast to three hours — about 30 minutes shorter than in recent years.
“So the producers, I think, decided wisely to not have a host and to go back to having the presenters and the movies being the stars,” Ms. Burke said.
The Oscars host traditionally opens the ceremony with a comedic monologue focusing on celebrities, the state of the movie industry, as well as cultural and political issues.
Ms. Burke said she would hear details from the show producers later this week but said there were plans for “a pretty exciting opening” to the telecast.
She added that speculation over the shape of the ceremony was an encouraging sign that the Oscars were still relevant. Audiences have dropped in recent years with the 2018 show attracting just 26.5 million viewers, the smallest number ever.
“I have found that the lack of clarity around the Oscars has kept the Oscars in the conversation and that the mystery has been really compelling. People really care,” she said.
Mexican drama Roma and British historical comedy The Favourite lead the Oscars nominations with 10 nods apiece.
Ms. Burke noted that three of the other best picture nominees — Disney’s Black Panther, Warner Bros.’ A Star is Born, and 21st Century Fox’ musical Bohemian Rhapsody — had each taken in more than $200 million at the North American box office alone.
“I think we are going to see a big turnout for this because these are big popular movies that have been nominated,” she said. — Reuters

Congress ratifies bill waiving fees for first-time job-seekers

A MEASURE exempting graduates and out-of-school youth from fees charged for official documents was ratified by both chambers of Congress on Wednesday.
Senators ratified on Feb. 6 the bicameral conference committee report of Senate Bill No. 1629 and House of Representatives Bill No. 172 or the “First-time Jobseekers Assistance Act” which exempts qualified beneficiaries from fees charged for a number of pre-employment documents.
In the House of Representative, the report was also ratified on Feb. 6, according to a status report on the bill posted on the Congress website.
Senator Emmanuel Joel J. Villanueva said in a statement on Thursday, “This proposed law will be a big help for new graduates and first-time job seekers.
In the version of the bill agreed by both chambers, the government documents covered by the law include birth certificates, barangay clearances, police and National Bureau of Investigation (NBI) clearances, marriage certificates, transcripts of records; taxpayer ID, the unified multi-purpose ID (UMID), and medical certificates from public hospitals.
The exemptions are valid for one year after the date of graduation or date of dropping out of school.
The bill is now for transmission to the Office of the President for signing.
Mr. Villanueva said ““We are hopeful that the President will be supportive of our bill that will greatly benefit our young individuals as they enter our country’s workforce.” — Gillian M. Cortez

Tycoon asserts ownership of firms behind Okada Manila

EMBATTLED Japanese gaming tycoon Kazuo Okada maintains that he is still the rightful owner of the companies behind Okada Manila, despite a Tokyo ruling affirming the validity of a trust agreement that led to his ouster in the companies.
In a statement issued Thursday, Mr. Okada’s lawyers said the tycoon’s daughter Hiromi plans to appeal the Tokyo decision in the complaint filed against them by brother Tomohiro.
A Tokyo District Court in a decision last Jan. 25 confirmed the validity of a 30-year trust agreement between Hiromi and Tomohiro that gave the latter majority control of Okada Holdings Limited (OHL).
OHL owns 67.9% of Universal Entertainment Corp. (UEC), a Japanese listed firm that owns Tiger Resort Asia Limited (TRAL). In turn, TRAL owns Tiger Resort, Leisure, and Entertainment, Inc., the local unit which owns and operates Okada Manila located along the state-run Entertainment City in Parañaque.
The trust agreement was what led to Mr. Okada’s removal from the management of OHL, as well as from his directorship in TRAL and TRLEI.
Mr. Okada’s lawyers noted that the decision is not yet final and can be appealed.
“Until the decision becomes final, the fight is not yet over and Kazuo Okada remains in control of Universal Entertainment Corporation (UEC) as 99 percent owner of Okada Holdings Limited,” Mr. Okada’s party said in a statement.
Mr. Okada’s lawyers said that Hiromi testified against Tomohiro during the Tokyo case, claiming that he took advantage of her weak emotional state to get her to sign the share agreements concerning OHL.
Hiromi added that her brother failed to explain the contents of the documents, contrary to his claims.
“On that day (March 2, 2017), I was going overseas again the following day, so I was really tired. There was no explanation. In a few minutes I signed them and it was over,” Mr. Okada’s lawyers quoted Hiromi as saying.
Aside from the case in Tokyo, Mr. Okada and his daughter had also filed civil and criminal proceedings in Hong Kong to regain control of OHL. The tycoon also wants to secure fraud and financial crimes against those responsible for this allegedly illegal removal as the director of OHL, UEC, and TRAL in 2017.
Mr. Okada further criticized TRLEI’s plan to change Okada Manila’s name without his consent. The plan to change Okada Manila’s name comes after the company completed its acquisition of 66.67% of listed shell firm Asiabest Group International, Inc., paving the way for its backdoor entry to the stock exchange.
“As the rightful owner of Okada Holdings, how can they not consult him on matters regarding his company and his property…He was not consulted at all in that transaction and he will file cases against those responsible for the backdoor listing,” Mr. Okada’s lawyers said. — Arra B. Francia

Odd couple

Green Book
Directed by Peter Farrelly
A FARRELLY movie up for the Oscars?
Green Book is Peter Farrelly going at it solo (his brother Bob didn’t join in for personal reasons), doing a period picture (for the first time) that has since earned serious Oscar talk (for the first time). It follows the reasonably true story of Don Shirley (Mahershala Ali) who’s doing a concert tour of the Midwest and segregated Deep South, and hires as chauffeur and bodyguard one “Tony Lip” Vallelonga (Viggo Mortensen), army veteran and nightclub bouncer, presently unemployed.
You’ve been here before: The Odd Couple, The Defiant Ones, Driving Miss Daisy — basically two people of different races, temperament, or social positions, forced to spend time with each other, in this case a car driving through rural America. This variation has two men, the white a lower-class slob, the black an upper-class snob, the white man behind the steering wheel. They go through stuff. They eat (a lot), and quarrel. They share a couple of laughs.
So how far does Mr. Farrelly get with fairly serious real-life drama? Pretty far, actually. Helps that Mr. Mortensen gets plenty of mileage from a broadly Brooklyn Italian accent (“You shouldna punched out da foreman.” “Well he shouldna woke me up.”) — for anyone who watches Scorsese films and Joe Pesci comedies, perfectly familiar territory from which to launch a long journey. He’s a bullshit artist, as he readily admits, to which Don asks: “You’re proud of that?” “It got me this job.”
Ali’s Don Shirley (you almost want to say in the back of your mind “shirty”) functions as an effective foil to Mr. Mortensen’s loud gregarious bluecollar joe, flinching at an offered piece of fried chicken (“I told you not to get grease on my blanket.” “Oooo I’m gonna get grease on my blanket!”), ordering Tony to back up the car to pick up discarded rubbish. It’s in the not-always-subtle details that the movie lives — Tony an unspoken racist (he tosses a drinking glass used by a black worker in his apartment), Don an understated elitist (when they first meet — in Don’s luxurious apartments above Carnegie Hall — Tony slouches on a couch while Don ascends to a throne), and how — predictably, but with some spin on old tropes — the two wear down each other’s rough edges smooth.
If Tony is the movie’s comic engine (with Don providing good accompaniment) Don’s narrative provides some of the dramatic heft, and arguably some of what we see that we haven’t seen before involves Don’s alienated sense of self — how his troubled relations with his brother distances him from his family, how his relative wealth and education distances him from much of the black community. He feels the need to reach out but on his terms, hence the concert tour.
How true is that portrait? The Shirley family denies this characterization of Don’s relationship with his family and with Tony. Mr. Farrelly concedes the former, though audio recordings from Don himself (used in Josef Astor’s documentary Lost Bohemia, about the artists living above the Hall) tend to support the latter assertion.
Putting all that aside (past a certain point accusations of historical distortion, as Shakespeare might agree, seem academic) does the movie — in itself, on its own terms — work? The Farrelly brothers aren’t known for their memorable camerawork or subdued storytelling but what they are known for is this gift for outrage comedy that can be put to remarkably deft use, can allow them license to say things most filmmakers would be condemned for saying (in the case of There’s Something About Mary, Kingpin [my favorite of their work], and Me, Myself, and Irene, how physical and mental disabilities don’t mark afflicted folk as separate from the rest of the world).
Maybe my biggest problem with Green Book is that the Farrellys, like this movie’s Don, scored their biggest successes (artistic if not commercial) on their terms, with grossout humor that celebrates the grotesque and the different — cut through the bullshit, get straight to the point. This — Peter without his brother Bob — is more like standard-issue Oscar bait, familiarly friendly fare meant to educate the already enlightened on the finer points of racism. The latter half of the picture is considerably more sombre, some of the lively electricity that informs earlier scenes channeled to a less jagged hum of indignation — Don has learned to appreciate his own community’s culture while Tony has decided to stand up against all the rampant discrimination: hooray and applause.
Come to think of it where else was this storyline supposed to go? Come to think further, the Farrellys usually flail about for an ending; you remember their work more for isolated moments than for well-structured storylines (no scene of Tony and Don sharing a hotel bed, Tony farting into his blanket, smothering Don with the reeking sheet, alas).
Does this movie deserve an Oscar nomination? I suppose — it’s middlebrow enough, wants to please everyone badly enough. But I like to think that for a while there, particularly during the picture’s first half, it was something a little more: ruder, cruder, less artistic with the bullshit.
MTRCB Rating:PG

GM’s incentive plan for Cruise chief points to IPO

DETROIT — General Motors Co on Wednesday outlined an incentive plan for the head of its self-driving car unit that points the way toward a possible initial public offering for the business.
The No. 1 U.S. automaker disclosed a long-term compensation plan that incentivizes Dan Ammann, chief executive of the Cruise unit, to develop the technology and commercial plans that could lead to the stock offering within 10 years, according GM’s annual 10K filing with the U.S. Securities and Exchange Commission.
Ammann, who stepped down as GM’s president and assumed the Cruise position at the start of the year, was awarded 16,914 restricted stock units for common shares of Cruise and stock options for 101,485 common shares of Cruise by the unit’s board on Monday.
The incentives are based on meeting certain targets, including “a change of control or initial public offering” that occurs prior to the 10-year anniversary of the stock grant, according to the SEC filing.
Ammann stands to make at least about $25 million based on the stock units, which have a value of $1,515 a share, according to the filing. However, his compensation could be much more lucrative if an eventual IPO drives the value of the stock options far above their strike price of $1,515 a share.
“Mr. Ammann’s compensation plan is consistent with CEO benchmarks from tech companies with similar market cap to Cruise and is heavily weighted toward the attainment of specific technology and commercial targets,” GM spokesman Tom Henderson said in a telephone interview.
Analysts have speculated that GM eventually will sell shares in Cruise or spin it off. Cruise, with more than 1,100 employees, is aiming to launch a robo-taxi service by the end of 2019.
GM Chief Executive Mary Barra told analysts on a conference call on Wednesday after the company reported stronger-than-expected earnings that the Detroit automaker was making “rapid progress” with the technology, and the company’s self-driving vehicle plans were “not squishy at all.”
“I think it’s in a strong position from funding,” she said. “I think it’s in a strong position as we continue to do the development.”
Cruise has a value of about $14.6 billion despite no significant revenue and a product not ready for commercial launch. Japanese technology investment fund SoftBank Group Corp and Japanese automaker Honda Motor Co invested a total of $5 billion for separate minority stakes in Cruise.
GM spent $700 million on Cruise last year and expects to spend another $1 billion on the unit this year, GM Chief Financial Officer Dhivya Suryadevara said on the earnings call.
Ammann joined GM in 2010 from Morgan Stanley, where he was an adviser to GM’s government-led bankruptcy restructuring in 2009. He became GM’s president in 2014. — Reuters

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