Does GM Still Have An Executive Compensation Problem?

Edward Niedermeyer
by Edward Niedermeyer

Gosh, was it really just Monday that Bob Lutz was complaining about the pay problems round General Motors way? Automotive News [sub] reports that, in addition to hiring ousted CEO Fritz Henderson as a consultant, GM’s Chairman, CEO and VP for Rattlesnake Killin’ Ed Whitacre has been handed a compensation package including $1.7m in cash annually. Not to mention the $5.3 million in stock payable over three years starting in 2012, or the $2m in restricted stock. Sure, that’s not much compared to most Chariman/CEO types, but it’s not bad for a government teat-sucking, profitless wonder. Especially considering former CEO Fritz Henderson only made $950k in cash annually plus $4.2m in stock as CEO ( he now makes $700k annualized as a 20 hour per month consultant). Ken Feinberg is slacking!

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  • Robert.Walter Robert.Walter on Feb 20, 2010

    Perhaps Bob Lutz's recent lamentations regarding undercompensation were to pave the way for this announcement (and more to come?).

  • Rob Finfrock Rob Finfrock on Feb 20, 2010

    Oh man, this is so damn beautiful. After a brief flash of glory (highlighted by January's highly suspect reported sales figures) it looks like the good Gov't -- er, General -- is back to its all-too familiar ways of falling on its collective face with increasing frequency. First they couldn't attract a qualified CEO, despite a market overflowing with available (and desperate) candidates... forcing Gov't Motors to settle on Whitacre, the man only Obama wanted. NOW, GM must dig even deeper into the septic tank and re-hire Henderson (the reasons why don't matter, just that the face of GM's most recent failures is once again drawing a GM paycheck... consulting!!! Oh, the irony!) Gov't Motors: Dead By 2011. Can't come a moment too soon either... if only we hadn't been forced to give up billions in tax dollars first in a failed attempt to prop it up.

  • Jkross22 Jkross22 on Feb 20, 2010

    I don't understand those calling out implosion dates for GM. That's not going to happen. The Michigan gang won't allow that to happen, and neither will the labor/UAW funded and backed Democratic party. GM is acting like the stereotypical welfare queen with 10 kids, a drug addiction and a claimed inability to work. This story sends a clear message to the entitlement minded UAW members. Why shouldn't they simply refuse to give any more ground on wage and benefit negotiation?

    • See 1 previous
    • Steven02 Steven02 on Feb 22, 2010

      Facebook User, While I don't think that GM is going to be going anywhere soon, I don't think the gov't will put any more money into the company either. Your 1st point, is already here. The 2nd point with incompetent management was very prevalent in the past. Lets see how the future goes there. The 3rd point... I don't think retails sales are actually declining right now, at least not for the brands that are sticking around. Those brands are seeing increases. The 4th point, I don't agree with. They do have several models that need to be replaced, and there recent are plans for most, if not all of them. I know the Impala replacement is going to take a while. Also, some of the future models seem to be exactly what people want. Many people want the new vehicles that are coming out like the Regal and Cruze. Calling the XTS not what people want when it has only been shown as a first concept is ridiculous. I also think it is terrible to think that people won't want that car. Not everyone wants a RWD corner carver. Many people do want large FWD luxury vehicles. As for the Volt, I beg GM sells everyone they make for a good while and does it easily. But, the 2 cars you bring up are not cars that are going to make or break GM either way. I really don't understand how people are priced out of GM cars. If someone can't be a Chevy Malibu, Equinox, or Cruze when it comes out, who are they going to buy from? And the optioned to the max Buick Enclave actually sells quite well. To get all of these points is going to take awhile if it ever happens.

  • Mikein08 Mikein08 on Feb 20, 2010

    The problem of course is not how much these people are paid; the problem is that they are INCOMPETENT. They are a perfect example of the Peter Principle. Here's the recipe guys, it's really simple: make affordable and reliable cars and trucks that people actually want to buy! Is that so hard? Apparently it is.