General Motors Corp. (GM) said Friday it will give three of its top executives base-pay raises in 2007 over what they made last year.

GM Chief Executive Officer Rick Wagoner will be paid $1.65 million this year, after taking a 50% base-pay cut in 2006. Wagoner had earned $2.2 million in 2005, a year in which the largest U.S. auto maker posted a $10.6 billion loss.

GM Chief Financial Officer Fritz Henderson and Vice Chairman Bob Lutz will both be paid $1.318 million in 2007, up from $1.16 million in 2006.

News of the raises comes at a time when GM and its domestic counterparts are gearing up for labor negotiations with the United Auto Workers union, set to begin in July. GM is expected to lobby for health-care cost cuts that are needed if it hopes to enjoy sustainable earnings growth and positive cash flow.

GM posted a $2 billion net loss last year, representing a dramatic recovery in bottom-line performance. The company's shares have gained 60% over the past 16 months, reflecting increased investor confidence in Wagoner's ongoing effort to restructure the auto maker.

However, GM will continue reporting cash outflows through at least 2007 and it is losing considerable market share in its core U.S. market. The company was also dealt an unwelcome blow earlier this week when Toyota Motor Corp. ™ for the first time knocked GM out of the spot as the world's No.1 auto maker in terms of sales.