$39,452.05 per day, including weekends

Ichingcarpenter

(1000+ posts) Send PM | Profile | Ignore

Sun Nov-09-08 08:54 PM
Original message

$39,452.05 per day, including weekends

It's difficult to imagine a more poorly run corporation than General Motors these days. The company reported a $2.5 billion loss in the third quarter and warned that it could run out of cash in 2009. GM's share price is down 78 percent this year.

One person who is not feeling the pain, though, is GM Chief Executive Rick Wagoner.

This year, Wagoner will pull down a salary of $2.2 million, in addition to other CEO perks. And last year, Wagoner's total compensation was $14.4 million. That works out to $39,452.05 per day, including weekends. (Note that in 2007, GM lost a staggering $38.7 billion).

And now, Wagoner has the gall to push for a government bailout for his company. In other words, Wagoner is a firm believer in the "capitalist" system when it comes to defending his obscene pay. But he apparently has no qualms about asking for billions of our tax dollars to help fix his sinking company.

Perhaps the most troubling aspect of all this is that GM's woes are entirely self-inflicted and the result of poor management over the years. While Toyota was perfecting hybrid technology for its now wildly popular Prius, GM was betting the farm on clunky gas-guzzling SUVs. Now that the latter are out of favor, thanks to sky-high gas prices, GM is on the ropes, because it was too short-sighted and stupid to have a "Plan B."

Actually, I guess GM does have a Plan B---stick out its hand and beg for the government to give it billions of our tax dollars.

So in the end, all of us will wind up paying for this fiasco. GM's workers, who're being laid off by the thousands will suffer the brunt of the pain. We taxpayers will also likely suffer. In fact, just about everyone is going to suffer, in the end. That is, except for the people directly responsible for GM's mess: the over-paid GM executives like Wagoner whose short-sightedness and poor decisions led to the fiasco at GM in the first place.

What's even more astonishing about this story is that Wagoner's fat paychecks dwarf the pay of Toyota's executives (who have traditionally earned only a small fraction of what their Detroit CEO counterparts earn).

Although Japanese CEO pay is not publicly disclosed, it is estimated to be only a fraction of what U.S. automaker CEOs make. For example, the estimated pay of Toyota's CEO in 2005 was under $1 million.

In fact, in recent years, U.S. CEOs have made vastly more than what their counterparts make in other nations. For example, in 2005, a typical Japanese executive made 11 times what a typical Japanese worker earned. In the U.S., the average CEO pulled down a staggering 475 times what the typical American worker earned.

http://www.opednews.com/articles/Despite-GM-s-Staggering-Lo-by-Marc-McDonald-081108-214.html

GM CEO Compensation Jumps 64%; S&P Looking at GM Downgrade
By Robert Farago
April 26, 2008 -

DETROIT (Reuters) - General Motors Corp (NYSE:GM - News) Chief Executive Rick Wagoner's salary and other compensation rose 64 percent in 2007 to about $15.7 million, mainly due to option grants, according to a proxy filed on Friday.

The GM compensation committee cited significant progress over the past few years in reducing the automaker's health care cost burden, increasing growth internationally and improvements in its cars and trucks in the 2007 awards to executives.

Wagoner's compensation rose from about $9.57 million in 2006. The figure was arrived at based on Wagoner's salary, all other compensation and the basis of annual grants.

GM paid Wagoner a salary of $1.6 million in 2007, along with $1.8 million in non-equity incentive compensation and nearly $700,000 for other compensation that includes insurance benefits, security, aircraft expenses and other factors.

GM, which reported a record $39 billion net loss in 2007, released the figures in a proxy statement on Friday afternoon that was filed with the Securities and Exchange Commission.

The automaker, which has been restructuring, reached a contract in 2007 with the United Auto Workers that has permitted buyouts for its UAW hourly workers, a second-tier wage for new hires and a plan that will push billions of health care obligations into a union-aligned trust.

Wagoner had accepted a reduced base salary in 2006 and 2007 and only about 16 percent of his compensation is guaranteed.

Fritz Henderson, who was promoted to president and chief operating officer in March, the No. 2 spot behind Wagoner, received compensation of about $9.3 million in 2007, up from about $5.1 million in 2006.

Vice Chairman Bob Lutz's compensation rose to about $9 million in 2007, from about $5.1 million in 2006.

GENERAL MOTORS NEWS
Lutz: Don’t reduce GM exec pay

GM executive Bob Lutz has rejected the suggestion by billionaire investor Kirk Kerkorian and his aide Jerry York that General Motors should reduce executive pay to help stem losses. York believes autoworkers shouldn’t be the only ones asked to make sacrifices, and executives should take cuts, too. But Lutz disagrees.

“Here’s where people get this wrong: They say, ‘Why are executives paid so much? You have to ask: Why are professional athletes paid so much,” Lutz said. “The capability of successfully trying to turn around an unsuccessful automobile company is a very rare and highly sought after skill set. And you do the shareholder no good whatsoever by reducing compensation to the point where everybody leaves.”

http://www.leftlanenews.com/lutz-dont-reduce-gm-exec-pay.html