Ask the Best and Brightest: GM Executive Retirement?
An anonymous GM retiree writes in:
Does anyone know that New GM is in the process of retiring about 25% or more of their executives with a fairly ‘normal’ retirement package? This means these execs who were at the healm leading into bankruptcy will be be getting almost a full retirement program including 90% of their earned SERP/ERP and half year’s salary in life insurance. This compares to all current retirees who lost 70% of their SERP and all of their life insurance except for $10k when GM came out of bankruptcy. The arrogance of the ‘new company’ that hasn’t made any money and is using public funds to continue in business is what we would have expected from the old company. Since this company is now owned by the government, can’t someone get at look at these numbers and see what the American taxpayer will be paying these people for the rest of their lives? I am a retiree and am grateful that we kept our retirement program at all. I am just shocked that the next retirees are not going to get similar cuts to their package.
A recent FastLane livechat on “Reinventing the GM Workplace” doesn’t provide any direct answers but does give an insight into GM’s priorities. Such as the idea that non-GM cars in GM employee parking lots “should be the first to go.” Writes GM’s Diana Tremblay, “people who work here should drive our products – I know there are personal cases that make it difficult but its more the attitude of not supporting the company that pays them.” Former CEO Rick Wagoner was set to receive $22 million but instead left with a mere $8.2 million.
More by Edward Niedermeyer
Comments
Join the conversation
@frank rizzo: Understand your point. Here is the issue. The new GM assumed the pension liabilities of the old GM. Under "typical" bankruptcy proceedings the ERP/SERP would have been wiped out. That would have meant significant haircuts for Wagonner and others. Instead they get virtually everything they were promised when they walked out the door. That amount stood at approximately $1.5 billion at yearend. That is your taxpayer dollars being used to reward the retirements of executives that should have received nothing but their qualified plan benefits at retirement. New day, same old shit!
"I am just shocked that the next retirees are not going to get similar cuts to their package." Ouch!