GM CEO Akerson fears losing managers over pay freeze

[Bozita]

Source: Detroit Free Press

Posted: Dec. 10, 2010
GM CEO Akerson fears losing managers over pay freeze
By TODD SPANGLER
FREE PRESS WASHINGTON STAFF


WASHINGTON – General Motors CEO Dan Akerson said today there won’t be any base pay increases for management in 2011 but he hopes to convince U.S. Treasury Department officials to let the company provide better compensation for some executives so it doesn’t lose them to other opportunities.

In a speech to the Economic Club of Washington, Akerson – who took over as the head of GM in August and guided it through an initial public offering last month that returned some $23 billion to the government and reduced Treasury’s take in the company from more than 60% to about 33% -- said GM is well positioned for the future with vehicles like the Chevy Volt coming on line, but that he still has worries, including how the company would react if a spike in oil prices would strike as sales are on the way up.

He is also worried about losing people, saying “we’re starting to see that now.” While in Washington, he said he planned to meet with Treasury officials to discuss getting “some relaxation” to strict rules setting executive compensation under the Troubled Asset Relief Program that lent the company some $50 billion to help it survive a quick trip through bankruptcy restructuring.

After the speech, Akerson declined to provide reporters with any additional details on who could be leaving or what sort of latitude he’s asking for. In September, Kenneth Feinberg, who had served as special master for executive compensation, approved a $9- million annual compensation package for Akerson, including stock and salary. David Rubenstein, who worked with Akerson when both were managing directors at the private investment fund the Carlyle Group, introduced him today and said repeatedly that Akerson walked away from a lot of money to take the GM job.

Read more: http://www.freep.com/article/20101210/BUSINESS0101/101210032/GM-CEO-Akerson-fears-losing-managers-over-pay-freeze#ixzz17k5ahCO3

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Just wondering if Akerson is worried about losing any of his tier 2 assembly line workers currently earning $14/hr.

[Mz Pip]

1. Where are they going to go?

Become Walmart greeters? Are there that many "other opportunities" out there?

Seems to me there are plenty of execcutives out there who would be happy to work for compensation that is less than several million dollars.

[AngryAmish]

2. THey have to pay good managers a ton because they have to live in Detroit

[dkofos]

5. Where million dollar homes go for $250,000

[Riley133]

3. Glad you mentioned the $14/hr wage

I caught it right before I was going to post about it.

[Blue_Tires]

4. what he needs to be concerned about is product

product is king in the auto industry...never forget

[LiberalFighter]

6. If there is going to be an incentive it should be on the back end not the front.

If they stay for 5 years then they get an increase in salary based on how well GM does. No efn bonuses though.

Personally, I think plant managers get paid too much.

[saigon68]

7. After the speech, Akerson declined to provide reporters with any additional details

SCUM BAG

[Lance_Boyle]

8. Wait - this is the management that ran GM into the ground, and he thinks they need RAISES?

I weep for their troubles. :nopity: Really, I do.

[zeemike]

9. I suggest a new business model.

If managers want to seek other opportunities let them go.
And don't replace them right away and see if things still work as well as before....my guess is that they will.
And if there is a function that must be preformed then promote from inside the company...and should they find that they don't need a lot of the management that they had before give the working people a bonus based on the savings of lower management expenses.

[jtuck004]

10. They should feel free to leave for South Korea immediately, because

there are 30 million unemployed or underemployed people here, only 1 job for every 6.

And I would bet anyone a thousand bucks right now there are people who not only have the
experience and education to take those positions but that they would be happy to do so.

This is nothing but sour grapes from someone who is just jealous that his company actually
has to produce something, as opposed to the better deal the investment banks got for nothing.