Henderson: GM Pay Cuts "Thoughtful"

Edward Niedermeyer
by Edward Niedermeyer

We’re not public yet but we will be and if we do our job that stock is going to have real value. We thought it was fair. We thought it was thoughtful

GM CEO Fritz Henderson comments on Pay Czar Kenneth Feinberg’s decision to dock his salary to a flinty $950,000. The AP reports Henderson’s total compensation could be worth $5.5m, apparently based on some unfathomable projection of GM’s IPO value. But Fritz is going to work for it. When asked if he’d read Steve Rattner’s magnum opus calling GM management “stunningly poor” and “perhaps the weakest finance operation any of us had ever seen in a major company,” Fritz’s responds in the affirmative…

There was a lot of truth in it. You’ve got to take that to heart. You’ve got to internalize it and say, “How do we change?” We went bankrupt. We’ve got to change

Dude, you were the Chief Financial Officer at GM for over three years before Rattner pushed Rick Wagoner out. The “weakest finance operation any of us had ever seen” jab was at you. Of course it also raises the real underlying question: if GM’s finance operations were in such deplorable shape, why did Rattner’s Rescue end with a promotion for the CFO? Oh right, Rattner already explained that one:

Later, I spoke to Fritz, who expressed enthusiasm for his proposed promotion but asked that he not be called “interim” CEO. “You can fire me anytime you want, but at least give me a better chance to succeed,” he said. We agreed.

GM’s IPO gets closer with every passing day (in theory), and something tells me Steve Rattner isn’t going to invest his own money in the half-hearted rescue job he engineered. So why raise a fuss by firing Fritz now? Hey, the guy works cheap and doesn’t complain.

Edward Niedermeyer
Edward Niedermeyer

More by Edward Niedermeyer

Comments
Join the conversation
2 of 15 comments
  • Wolfwagen What I never see when they talk about electric trucks is how much do these things weigh and how much does that detract from the cargo-carrying capacity?
  • Wolfwagen I dont know how good the Triton is but if they could get it over here around the $25K - $30K They would probably sell like hotcakes. Make a stripped down version for fleet sales would also help
  • 3SpeedAutomatic You mentioned that Mitsubishi cars had lost their character. Many brands are losing that that element as well. GM is giving up on the ICE Camaro and Dodge on the ICE Challenger. There goes the Bad Boy image. Might as well get your teeth pulled and dentures put in place. Would like to see a few EVOs with cherry bomb exhaust and true 4 cylinder BIG blower turbos; 4 wheel drift capacity is mandatory!!🚗🚗🚗
  • Tassos Here in my overseas summer palace, I filled up my tank twice in May, at 68 and 52 euros (a full 90+ liter tank fillup has taken 130-135 Euros in the past, and I am 23 miles from downtown here, while only 1-2 miles in the US)Still, diesel here is MUCH cheaper than gas. Yesterday, I paid 1,488 a liter while gas was at least 1,899 (regular).Multiply by almost 4 for gallons AND by an additional 1.1 for $.
  • 3SpeedAutomatic IIRC, both China and the EU use a standardized charger connection. About time the US & Canada to follow.Would take some of the anxiety out of an EU purchase and accelerate adoption. 🚗🚗🚗
Next