By Robert Farago
April 25, 2008 -
Awesome. No really. I'm in awe. At the very moment GM NA's cash flow has gone bye-bye (thanks to union strikes at American Axle and GM factories), just days before the automaker gives the world the gory details of its American cash conflagration, the General reveals that it's bumped-up– sorry, "restored" its top suit's salary. CEO Rick Wagoner's paycheck returns to its 2003 - 2006 levels, from the "reduced" $1.65m back to $2.2m. But don't get to feeling what the Hell, it's only a $570k jump, and it WAS his old salary. Automotive News reports that Rick's TOTAL compensation for '07 was $14.4m, or $39,452.05 per day (including weekends). Meanwhile, Car Czar "Maximum" Bob Lutz gets a nice little "thank you" for winning TTAC's Bob Lutz Award: a base salary "boost" from $1.3m p.a. to $1.75m (so much for "I gave at the office"). MB's total compensation for '07: $6.9m. Newly promoted GM COO (from CFO) Fritz Henderson gets $1.8m; total pay package $7.6m. Friends of GM are free to defend this pay-out (supply - demand), but I find the fact that these guys are raking in MORE money as 32 GM factories are off-line, as GM struggles for its survival, appalling. But you knew that…
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POWERED
April 25th, 2008 at 9:45 pm
A lull in the multiple thunderstorms tonight allowed me to peek back on my favorite website.
Yes, it’s utterly appalling to me, as well. But not much about GM’s death-spiral surprises me any more.
Certainly at least they should realize that a somewhat more realistic pay cap for GM executives at this time would have gone over far better with the rank & file… but I guess they don’t care a whit.
More thunder in the distance - gotta cut the computer.
April 25th, 2008 at 10:20 pm
menno:
Shocking, really.
April 25th, 2008 at 10:31 pm
I am the last person to criticize a company for what it pays its CEO if the CEO is earning his keep. But where is GM’s Board of Directors in all of this?? GM’s lost huge market share and more than half of the value of the company as Wagoner sells off anything of value to keep the lights on. In most organizations, “performance” like this would be rewarded with a fast ride on a greased rail and possible prosecution.
GM is doomed.
April 25th, 2008 at 11:10 pm
I tell you those guys live in a parallel universe! I betcha did’nt know there is a trans-dimensional gateway at the top of RenCen and that Rick, Bob and Fritz are really inhabited by aliens.
Cicero, you are right GM is doomed!
April 26th, 2008 at 1:22 am
that’s absolutely horrible.
April 26th, 2008 at 1:50 am
Oh, come on now, Rick has to live.
In 2005 he made more money than the top 9 executives of Toyota, combined. That shows you what a great job he’s been doing.
The GM board is insane.
April 26th, 2008 at 2:46 am
Only in Corporate America that a CEO will get pay millions and millions of dollars to run the coporation down….this is really the “American Dream”
April 26th, 2008 at 7:31 am
The nine top executives at Toyota combined!Shocking?apalling?you folks are too kind.
Criminal gangsters fraudulant would be would be the words that come to my mind.
Executives reaping/rapeing money while stomping on the working people.This is were unions got thier start.This sort of crap gives the people on the floor just more resolve.
Long may the UAW live.
April 26th, 2008 at 8:27 am
Yeah, a guy making 200 times what a factory floor worker makes can’t exactly expect the “pleading poverty” message (to get union concessions) to go over very well.
April 26th, 2008 at 12:06 pm
while the chairmen of toyota and honda receive less than a million each.
April 26th, 2008 at 12:54 pm
Robert Farago
Meanwhile, Car Czar “Maximum” Bob Lutz gets a nice little “thank you” for winning TTAC’s Bob Lutz Award: a base salary “boost” from $1.3m p.a. to $1.75m (so much for “I gave at the office”). MB’s total compensation for ‘07: $6.9m.
And now you understand the basis for Putz saying “rich people don’t care about the price of gas”.
If they feel pinched, they simply “request” more for their vastly important contribution to society. As in, “I think the deck chairs all need to be 15cm from the deck railing, Captain Smith…”
Bruce
April 26th, 2008 at 8:33 pm
executive overpay, it will end some day. But sorry Mikey, it won’t be due to the UAW’s “efforts”
April 27th, 2008 at 2:32 pm
I wish I could open my own car company, employ every worker in GM and do things right. Better designs, better quality, just for the satisfaction of putting a good name on American cars. I would get paid less… (i guess until greed kicks in)
April 28th, 2008 at 10:11 am
The most appropriate picture I’ve seen for an article yet.
The board is free to pay what they want, and investors can will react. I am sure they will. Call it the last song of the night for this band.
As ordinary citizens, not GM board members, we have a duty to be informed about our decisions, and this information is very telling.