Comments on: Bailout Watch 183: Senator Chuck Grassley: “Be Like Lee”

By: Dangerous Dave

Dangerous Dave — Sat, 15 Nov 2008 03:22:01 +0000

joeaverage: Sounds like the best plan to me.

By: Runfromcheney

Runfromcheney — Sat, 15 Nov 2008 01:06:57 +0000

Where Have All the Leaders Gone? Is a great book. I own a copy myself. I really look up to Mr. Lee.

By: joeaverage

joeaverage — Fri, 14 Nov 2008 20:25:15 +0000

I say we strip these guys of their fortunes and stick them in a $150K house with 27 years of mortgage left, about $12K worth of consumer debt, and at least one car payment on something domestic built and completely ordinary – something with a few known issues like transmission rebuilds every 60K miles. Point them to an ordinary job making $50K.

I think that would be better than death. This way it isn’t an easy way out – they find themselves in a situation they have to live their way out of.

And no calling on “old buddies” to better their employment situations either.

Make sure that every once in a while they get laid off, have a surprise vehicle replacement necessary and a HVAC system that needs signififcant work at the worst possible time.

By: OldandSlow

OldandSlow — Fri, 14 Nov 2008 19:24:47 +0000

Guido, aka Lee Iacocca would at least stick his neck out to bring out some new products. He could also play the role of salesman, something that pained me to see Dieter Zetsche do. Not everything that Lee stuck out there worked, but he was a product guy.

Rick Wagoner reminds me of someone who sends major decisions to a committee in order to cover his butt. I really don’t seem him as someone to forgo a salary until all the loans are repaid or God forbid fall on his sword and resign.

Over at Chrysler, I hope Bob Nardelli doesn’t want another 210 million dollar parachute, aka Home Depot. He sure hasn’t done much except over promise and under deliver.

Mullally looks to have the best chance to pull off a turn around.

By: J.on

J.on — Fri, 14 Nov 2008 17:53:51 +0000

In Roman times, and frankly since time immemorial, when the head of a large organization utterly and completely fucked up (it’s really the most appropriate word), he would normally be expelled out of the land, killed or given the option to commit suicide.

Now, since we live in the day of international jet travel, expulsion as a punishment simply does not work the way it used to. Thus, the mortality option is the one we have to go for. Frankly, even if the top brass at the big 3 lose their jobs, they still reaped millions during the downfall. Thus the only way to deprive them of what really mattered to them, the only thing that matter to them, is to not allow them to enjoy it. And what is more finite than death? In which state of life can you enjoy money less than when you are dead?

Granted, my ideas may be radical, but radical times call for radical measures. And those measures will hopefully send a signal to future corporate leaders regarding which actions are worth risking, and which are not. Because frankly, these people aren’t afraid enough of the consequences of their actions, because at the moment there are no consequences, just bailouts and golden parachutes.

By: chuckR

chuckR — Fri, 14 Nov 2008 17:34:27 +0000

If you are a politician and want to sell this mess to the people who you depend on to re-elect you, then these sorts of preconditions are essential. I have no problem with the less-than-successful management being left with only stock options for compensation. If that’s the case, they will have more reason to succeed.

I’ve had my own business for 31 years and have had fat years and lean ones. Never considered a handout, never thought I was essential.

These guys in Motown and on Wall Street think they are so damned smart and irreplaceable. If they are, how come their companies are so broke?

By: Robbie

Robbie — Fri, 14 Nov 2008 17:25:35 +0000

An anti-subsidy Iowan senator!!! Rolling on the gound laughing now… The same Iowa that takes the rest of the country hostage with their primaries and ethanol subsidies… How about $1 salaries for your corn farmers until they have found a way to produce crops that actually have a real market for them?

Quote: “Grassley, who has a 750-acre farm in New Hartford, Iowa, that produces corn and soybeans, said corn-based ethanol has been “clobbered” unfairly by both Democrats and Republicans in the growing debate over biofuels and rising food and fuel costs.”

By: AKM

AKM — Fri, 14 Nov 2008 17:24:25 +0000

Great letter and comments. But isn’t Iowa the biggest recipient of Washington subsidies for the ultra-inefficient corn ethanol? Let’s cut those as well.

By: RetardedSparks

RetardedSparks — Fri, 14 Nov 2008 17:20:14 +0000

The sad truth is that the execs – and I would include the top 100 people at each company – are so completely out of touch with reality that they literally cannot comprehend the situation at hand. (Sure, like any other organism with at least one cell, they have instincts of self preservation)
Even the shock of C11 would likely take at least a year to sink in. They would have to go through every stage of grief for each of their deeply internalized (and, let’s not underestimate, institutionalized) justifications and excuses: it was the foreign competition – NOT OUR FAULT; it was gas prices – NOT OUR FAULT; it was the credit crisis – NOT OUR FAULT; and on and on.
The amount of self-awareness and that they would have to come to terms with is staggering, and is not likely within the capability of any of these guys….

By: relton

relton — Fri, 14 Nov 2008 17:17:44 +0000

Iacocca did make a lot of money on Chrysler stock, but only because the company became viable again. Had he done as good a job as Wagoner et al, he would have had to live on his dollar a year salary.

Bob

By: TexN

TexN — Fri, 14 Nov 2008 17:01:55 +0000

Rick Wagoner,
Let me help you draft your response to Senator Grassley:

Senator,
Thanks for the suggestion. To quote Patrick Ewing during the NBA players strike, “Well, we make a lot of money, but we spend a lot, too.”
Regards,
Rick
p.s. When do we get the money?

By: TireGuy

TireGuy — Fri, 14 Nov 2008 16:58:27 +0000

Great letter. Although, I would like to know whether Lee was not being paid anyway by receiving plenty of stock options.

I do not believe that Grassley will receive an answer on this. The 3 CEOs believe that they are doing such a great job, that they must just stay on, at whatever costs. Waggoner has set the example.