House Committee Blasts Overpaid Bailed-Out Execs. The Freep Blasts GM

Bertel Schmitt
by Bertel Schmitt
house committee blasts overpaid bailed out execs the freep blasts gm

Yesterday, the House Oversight and Government Reform subcommittee held a hearing to look into executive compensation “at bailed-out firms that is egregiously out of line with what the President committed to the American people,” as Chairman Jim Jordan said. Jordan recalled that the President had committed “that top executives at firms that receive extraordinary help from U.S. tax payers will have their compensation capped at half a million dollars.” That clearly wasn’t the truth. Yesterday, we heard that GM CEO Dan Akerson, for example, made $9 million in 2012 and wanted $11.1 this year. Jordan said that “Treasury’s failure to protect tax payers is part of a disturbing pattern in which this administration makes promises to the public but the does not live up to them.” That’s not the only pattern that is disturbing.

Fight government waste, advance to 8:45

Yesterday, media outlets, including TTAC, The Detroit Free Press, which initially had published the documents, writes today that “GM called the report false, though the committee later released the same document showing a proposed total compensation package of $11.1 million for Akerson.” The Freep then put its finger on an even more embarrassing fact:

It turns out that Akerson already made $11.1 million in 2012, “because he was allowed to cash in stock awards he received in 2011,” the Freep says. So, $11.1 million in 2012 and $11.1 million in 2013 wouldn’t be a raise. At least not this year, sure. Splitting hairs may work in court, but not in the court of opinion. Trying to be too smart often looks very stupid.

We have linked to the full recording of the hearings. They are another example of Government waste, in this case of bytes and bandwidth. The first 8 minutes and 45 seconds are a recording of nothing. Your tax dollars at work.

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3 of 34 comments
  • Stickmaster Stickmaster on Feb 28, 2013

    Some of the comments here prove that the hoi polloi in America will defend to the death their corporate masters, always believing that they must have "earned" their way to the top through old-fashioned hard work and honesty, and that surely these brilliant executives need even more compensation for sending the stock to infinity and rewarding us mere mortals with even more useless gizmos which will surely make us live forever. All hail the American CEO! All hail the American CEO!

  • Probert Probert on Mar 01, 2013

    So lets see: you choose this topic because GM got a bailout loan that they're repaying from profits of products sold. The loan saved 10 of thousands of jobs in the deepest part of a recession but that's unforgivable. Meanwhile reports come out the the main perpetrators of the recession- wall street banks (estimated economic destruction equivalent to 20% of gdp) - have been getting - in addition to their huge bailout - and constant stream of taxpayer funding to the tune of about 90,000,000,000 dollars a year. Which curiously is about the same as their purported profits. 11 mill is too much but harping on GM (and even complaining they don't play nice with ttac) is, in the greater scheme of things, a bit petty.

    • Mor2bz Mor2bz on Mar 01, 2013

      Let's not see anything. After the US sells its shares of GM about 35% will still be lost (I haven't bothered to look up the exact amount, which will vary with current stockprices as the shares are gradually sold). How will the jobs be "saved" if GM continues to make shitty cars? And aren't many of the jobs shit since a tiered pay structure is now in place for new employees? Of course it's all small change to what the baron robber bank fucks have walked off with; no argument there.

  • Azfelix From certain angles the bonnet appears oversized with respect to the rest of the car - like a skinny teenager wearing a bulky sweater nicked from her older sister's wardrobe.
  • Tassos This is way too god damned OLD, 21 years old to have all the necessary options you need TODAY. You need a 10 year old or less car. AND if you give us THIS POS, a 21 year old model, that is not even a LUXURY car, whoever pays $10k for a Golf, And I Do NOT care what anniversary it is (they are all UTTERLY INSIGNIFICANT) deserves to get this MOST UNRELIABLE AND COSTLY TO REPAIR OF ALL LOUSY ECONOBOXES< EVEN THE DOMESTICS AND THE KOREANS.
  • Tassos As you say, Toyota confirmed this on TUESDAY. Today is WEDNESDAY. Why is everything on TTAC held back one or more days before you tell us the NEWS when it is NO MORE THE NEWS?
  • MRF 95 T-Bird You can find a decent and far more stylish Audi TT or an S4 of a similar vintage for under $10k.
  • RHD "In all situations, the grip of the tires (225/40R18 front, 225/35R18 rear) brings with it road noise."Are the rear tires actually smaller than the fronts??!! Adding just a bit of sidewall would take care of the bumps and rough ride. I'm not a fan of BMWs, personally, but this is a very enjoyable car. There are times when driving a convertible is pure bliss, and with a bit of power it's fun as well. (And certainly a better drive than a gussied-up, overpriced German taxicab!)