Bailout Watch 575: Canadians Demand GM and Chrysler Disclose BOD Members' Pay and Perks
Her neighbors to the south may not recognize the fact (even parenthetically), but Canada kicked-in as-yet-uncounted billions in federal funds to keep the Chrysler and GM zombies in a vertical position. Whatever the final tally, the Motown subsidy was the largest bailout in Canadian history. In exchange, they received a seat on both automakers’ Board of Directors. Ottawa and Toronto chose Carol Stephenson, dean of the Richard Ivey School of Business at the University of Western Ontario, to bop on down to RenCen to see what’s shaking. Auburn Hills hosts George Gosbee of Tristone Capital. OK, so how much are they getting paid for their time? They ain’t saying, exactly. And Canadians are not happy. Specifically, the Edmonton Journal:
Chrysler and GM refuse to disclose their compensation—along with all other board members—is an outrage and insult to citizens on both sides of the border.
To be precise, GM admits with comical simplicity only that board members are paid a “minimum of $200,000” a year plus a “free car,” which we assume is not a loaded Aveo. Chrysler, incredibly, still declines to reveal any financial information about board remuneration, citing privacy issues.
It gets worse.
While [Canada’s GM rep Carol] Stephenson-––who sits on a number of other government and corporate boards and will retain her post as dean––-will receive a base cash payment of $200,000 and a company vehicle, Chrysler has refused to reveal compensation for its board of directors. As well, both companies refused news media requests to release details of salaries for its Canadian CEOs.
Once upon a time, GM CEO Fritz Henderson swore under oath that the New GM would be transparent in all its dealings. While Fiat’s Sergio Machionne made no such pledge re: New Chrysler, is it too much to ask that these taxpayer-supported, not-to-say-nationalized automakers open their books to the people who made it possible for them to have books which they can open? Apparently so.
Which raises the inevitable question: what else are they hiding?
More by Robert Farago
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