Does GM Still Have An Executive Compensation Problem?
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!
Perhaps Bob Lutz's recent lamentations regarding undercompensation were to pave the way for this announcement (and more to come?).
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.
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?
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.